One simple way you can practice the methods used by appraisers is to write a detailed analysis of something you are considering investing in, such as a car, a tablet computer, or even which college to attend. Your analysis should include both the benefits and the shortcomings of the investment as well as your final recommendation. Is the car overpriced? Does one particular school offer a better value for you? By doing this, you will begin to get a feel for the researching and writing done by an appraiser. Another way to explore this career is to look for part-time or summer work with an appraisal firm. Some firms also have jobs as appraiser assistants or trainees. Working at county assessors' or treasurers' offices, financial institutions, or real estate companies also might provide experience. If you are interested in working with real estate, you may want to learn the particulars of building construction by finding summer work with a construction company.
Property is divided into two distinct types: real property and personal property. Real property is land and the structures built upon the land, while personal property includes all other types of possessions. Appraisers determine the value, quality, and use of real property and personal property based on selective research into market areas, the application of analytical techniques, and professional judgment derived from experience. In evaluating real property, they analyze the supply and demand for different types of property, such as residential dwellings, office buildings, shopping centers, industrial sites, and farms, to estimate their values. Appraisers analyze construction, condition, and functional design. They review public records of sales, leases, previous assessments, and other transactions pertaining to land and buildings to determine the market values, rents, and construction costs of similar properties. Appraisers collect information about neighborhoods, such as availability of gas, electricity, power lines, and transportation. They also may interview people familiar with the property, and they consider the cost of making improvements on the property.
Appraisers also must consider such factors as location and changes that might influence the future value of the property. A residence worth $300,000 in the suburbs may be worth only a fraction of that in the inner city or in a remote rural area. But that same suburban residence may depreciate in value if an airport is being built nearby. After conducting a thorough investigation, appraisers usually prepare a written report that documents their findings and conclusions.
Appraisers may specialize based on type of property. Residential appraisers focus on homes and other residences that house one to four families. Commercial appraisers specialize in property that is used for commercial purposes. Examples of this type of property include stores, restaurants, and hotels.
Assessors perform the same duties as appraisers and then compute the amount of tax to be levied on property, using applicable tax tables. The primary responsibility of the assessor is to prepare an annual assessment roll, which lists all properties in a district and their assessed values.
To prepare the assessment roll, assessors and their staffs first must locate and identify all taxable property in the district. To do so, they prepare and maintain complete and accurate maps that show the size, shape, location, and legal description of each parcel of land. Next, they collect information about other features, such as zoning, soil characteristics, and availability of water, electricity, sewers, gas, and telephones. They describe each building and how land and buildings are used. This information is put in a parcel record.
Assessors also analyze relationships between property characteristics and sales prices, rents, and construction costs to produce valuation models or formulas. They use these formulas to estimate the value of every property as of the legally required assessment date. For example, assessors try to estimate the value of adding a bedroom to a residence or adding an acre to a farm, or how much competition from a new shopping center detracts from the value of a downtown department store. Finally, assessors prepare and certify an assessment roll listing all properties, owners, and assessed values and notify owners of the assessed value of their properties. Because taxpayers have the right to contest their assessments, assessors must be prepared to defend their estimates and methods.
Most appraisers deal with land and buildings, but some evaluate other items of value. Specialized appraisers evaluate antiques, gems and jewelry, machinery, equipment, aircraft, boats, oil and gas reserves, and businesses. These appraisers obtain special training in their areas of expertise but generally perform the same functions as real property appraisers.
Personal property assessors help the government levy taxes by preparing lists of personal property owned by businesses and, in a few areas, householders. In addition to listing the number of items, these assessors also estimate the value of taxable items.