1. Estate Appraisal: These are usually ordered when an owner passes away. They are also referred to as date-of-death appraisals since they are retrospective, and the effective date is the date of passing. These can be desktop or complete reports. The type of report varies on the situation. If the client wants to sell the home and settle the estate, then a listing appraisal is completed with the current effective date. An IRS appraisal is more appropriate if the client is looking to retain the property and needs a retrospective appraisal for tax purposes. Sometimes the client needs BOTH a retrospective and a current valuation, in which case 2 appraisals are required. See IRS appraisal and Listing appraisal.
Level of fieldwork: full inspection, or exterior only, or desktop, depending on the level of inspection needed. The comps are not inspected nor photographed from the street.
2. Builder/Investor: These assignments report an ARV (after repaired value) and an As-Is value. They are current valuations and are typically used for hard money lending. They are a particular assignment as they fully encompass a listing appraisal while also involving a hypothetical assumption that the home is fixed. The appraiser has to have an understanding of the work that is going to be completed to fix the home. Usually, the home jumps the market from wholesale to retail. This report enables an investor to determine their profitability in a deal, how to list the property to exit the deal, and how the lender can collateralize the subject in the deal.