An appraisal is a process to determine the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeable and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions where:

• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and each acting in what he considers his own best interest;
• A reasonable time is allowed for exposure in the open market;
• Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto;
• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Most of the people involved are very familiar in a typical real estate transaction. The Realtor, the lender/bank/mortgage company and the title company which ensures that all aspects of the transaction are completed and that a clear title passes from the seller to the buyer.

Who can give an opinion of value ?  Anyone can.  Your neighbor, plumber, lawyer etc.  However, they may not be qualified, their value opinion may not be in accordance to the law or it may not be accepted for the intended use.  A real estate appraiser is a person who is engaged in the practice of real estate appraisal.  A qualified appraiser gives an unbiased, the most accurate opinion of value.  A qualified appraiser is a licensed appraiser, licensed certified residential appraiser or a licensed certified general appraiser who provides them with the most accurate estimate of value for the real estate in question.  Federal mandate requires that after January 1, 1993 that all apprisers must be licensed or certified by a state licensing agency in all federally related transactions.  All licensed appraisers in the State of Wisconsin are required to follow USPAP (Uniform Standards of Professional Appraisal Practice). 

What's the difference in the licensure?

A Licensed Appraiser in Wisconsin as of 2008 is an individual who has taken 150 hours of approved appraisal classes and has passed a State License test.  College education is not required.  A Licensed Appraiser is typically one who is an apprentice and gaining experience to qualify to take the States test to become a Certified Appraiser.  Licensed appraisers may conduct appraisals of complex 1-4 family residential properties having a transaction value of not more than $250,000 or non-complex residential property having a transaction value of not more than one million dollars and commercial property having a transaction value of not more than $250,000.

A Licensed Certified Residential Appraiser in Wisconsin is an individual who has taken 200 hours of approved appraisal classes, has accumulated 2,500 hours of experience obtained over a period of not less than 24 months, has an Associate Degree or 21 semester credit hours in specific content areas and has passed the State Certified Residential examination.  A Certified Residential Appraiser may conduct appraisals of residential real estate without regard to value and commercial real estate having a transaction value of not more than $250,000.

A Licensed Certified General Appraiser in Wisconsin is an individual who has taken 300 hours of approved appraisal classes, submitted 3,000 hours of appraisal experience over a period of not less than 30 months (no more than 50% residential), passed the State Certified General Appraiser exam and have a Bachelors Degree or 30 hours of semester credit hours in specific content areas.  A Certified General Appraiser may conduct appraisals of residential or commercial real estate without regard to transaction value.

Who Should I Hire?

If your property is zoned residential (1-4 family), is not complex, worth less than one million dollars, any of the three classifications of appraisers is qualified by the State.  If you want someone with experience a Certified appraiser should be used.

If your property is zoned Multi-family (1-4 family), Agricultural, Industrial, Commercial and worth less than $250,000 a Certified Residential or Certified General Appriser is needed. 

If your property is zoned Multi-family (more than 4 units), Agricultural, Industrial, Commercial and worth more than $250,000 a Certified General Appriser is needed. 

View a sample appraisal