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TEL: 973.949.4768 FAX: 973.427.1505
BILL@9739494768.COM
Welcome to Bici Appraisals home page. LooK no further if you are in need of
the following, a New Jersey licencesd residential appraiser, New York
licencesd residential appraiser, for a quality appraisal in NY or NJ. Call
973-949-4768 to speak to one of our many NJ staff appraisers or NY appraisers
for additional information. Requests can also be made VIA Fax or email.Please
Fax or email your request for a New York Appraisal or New Jersey appraisal to
FAX:973-427-1505, BILL@9739494768.COM.
Again If you are in need of a Quality appraisal, by qualfied licencesd
Appraisers in New Jersey or New York, please try us first to realize the
difference a modern Appraisal office can provide we are located in NJ and
service the following counties.
NEW JERSEY NEW YORK
Atlantic COUNTY,NJ Appraiser BRONX,NY Appraisal
Bergen COUNTY,NJ Appraiser DUTCHESS,NY Appraisal
Burlington COUNTY,NJ Appraiser NASSAU,NY Appraisal
Camden COUNTY, NJ Appraiser NEW YORK(MANHATTAN),NY Appraisal
Cape May COUNTY,NJ Appraiser ORANGE,NY Appraisal
Cumberland COUNTY,NJ Appraiser QUEENS,NY Appraisal
Essex COUNTY,NJ Appraiser RICHMOND(STATEN ISLAND),NY Appraisal
Gloucester COUNTY,NJ Appraiser ROCKLAND,NY Appraisal
Hudson COUNTY,NJ Appraiser SUFFOLK,NY Appraisal
Hunterdon COUNTY,NJ Appraiser SULLIVAN,NY Appraisal
Mercer COUNTY,NJ Appraiser ULSTER,NY Appraisal
Middlesex COUNTY,NJ Appraiser WESTCHESTER,NY Appraisal
Monmouth COUNTY,NJ Appraiser
Morris COUNTY,NJ Appraiser
Ocean COUNTY,NJ Appraiser
Passaic COUNTY,NJ Appraiser
Salem COUNTY,NJ Appraiser
Somerset COUNTY,NJ Appraiser
Sussex COUNTY,NJ Appraiser
Union COUNTY,NJ Appraiser
Warren COUNTY,NJ Appraiser
Below is a partial listing of all the nj towns and counties we serve, please
feel free to call for additional information .telephone 973.949.4768
Adelphia, Allamuchy, Allendale, Allenhurst, Allentown, Allenwood, Alpine,
Andover, Annandale, Asbury, Asbury Park, Atlantic Highlands, Augusta, Avenel,
Avon By The Sea, Baptistown, Barnegat, Barnegat Light, Basking Ridge,
Bayonne, Bayville, Beach Haven, Beachwood, Bedminster, Belford, Belle Mead,
Belleville, Belmar, Belvidere, Bergenfield, Berkeley Heights, Bernardsville,
Blairstown, Blawenburg, Bloomfield, Bloomingdale, Bloomsbury, Bogota,
Boonton, Bound Brook, Bradley Beach, Branchville, Brick, Bridgewater,
Brielle, Broadway, Brookside, Budd Lake, Butler, Buttzville, Caldwell,
Califon, Carlstadt, Carteret, Cedar Grove, Cedar Knolls, Changewater,
Chatham, Chester, Clark, Clarksburg, Cliffside Park, Cliffwood, Clifton,
Clinton, Closter, Colonia, Colts Neck, Columbia, Cranbury, Cranford, Cream
Ridge, Cresskill, Dayton, Deal, Delaware, Demarest, Denville, Dover, Dumont,
Dunellen, East Brunswick, East Hanover, East Orange, East Rutherford,
Eatontown, Edgewater, Edison, Elizabeth, Elmwood Park, Emerson, Englewood,
Englewood Cliffs, Englishtown, Essex Fells, Fair Haven, Fair Lawn, Fairfield,
Fairview, Fanwood, Far Hills, Farmingdale, Flagtown, Flanders, Flemington,
Florham Park, Fords, Forked River, Fort Lee, Fort Monmouth, Franklin,
Franklin Lakes, Franklin Park, Freehold, Frenchtown, Garfield, Garwood,
Gillette, Gladstone, Glasser, Glen Gardner, Glen Ridge, Glen Rock, Glenwood,
Great Meadows, Green Village, Greendell, Hackensack, Hackettstown, Haledon,
Hamburg, Hampton, Harrington Park, Harrison, Hasbrouck Heights, Haskell,
Haworth, Hawthorne, Hazlet, Helmetta, Hewitt, Hibernia, High Bridge, Highland
Lakes, Highland Park, Highlands, Hightstown, Hillsdale, Hillside, Ho Ho Kus,
Hoboken, Holmdel, Hopatcong, Hope, Hopewell, Howell, Imlaystown, Ironia,
Irvington, Iselin, Island Heights, Jackson, Jersey City, Johnsonburg,
Keansburg, Kearny, Keasbey, Kendall Park, Kenilworth, Kenvil, Keyport,
Kingston, Lafayette, Lake Hiawatha, Lake Hopatcong, Lakehurst, Lakewood,
Lambertville, Landing, Lanoka Harbor, Lavallette, Layton, Lebanon, Ledgewood,
Leonardo, Leonia, Liberty Corner, Lincoln Park, Lincroft, Linden, Little
Falls, Little Ferry, Little Silver, Little York, Livingston, Lodi, Long
Branch, Long Valley, Lyndhurst, Lyons, Madison, Mahwah, Manahawkin,
Manasquan, Mantoloking, Manville, Maplewood, Marlboro, Martinsville, Matawan,
Maywood, Mc Afee, Mendham, Metuchen, Middlesex, Middletown, Middleville,
Midland Park, Milford, Millburn, Millington, Milltown, Mine Hill, Monmouth
Beach, Monmouth Junction, Monroe Township, Montague, Montclair, Montvale,
Montville, Moonachie, Morganville, Morris Plains, Morristown, Mount
Arlington, Mount Freedom, Mount Tabor, Mountain Lakes, Mountainside,
Navesink, Neptune, Neshanic Station, Netcong, New Brunswick, New Egypt, New
Milford, New Providence, New Vernon, Newark, Newfoundland, Newton, Normandy
Beach, North Arlington, North Bergen, North Brunswick, Northvale, Norwood,
Nutley, Oak Ridge, Oakhurst, Oakland, Ocean Gate, Ocean Grove, Oceanport,
Ogdensburg, Old Bridge, Oldwick, Oradell, Orange, Oxford, Palisades Park,
Paramus, Park Ridge, Parlin, Parsippany, Passaic, Paterson, Peapack,
Pennington, Pequannock, Perrineville, Perth Amboy, Phillipsburg, Picatinny
Arsenal, Pine Beach, Pine Brook, Piscataway, Pittstown, Plainfield,
Plainsboro, Pluckemin, Point Pleasant Beach, Pompton Lakes, Pompton Plains,
Port Monmouth, Port Murray, Port Reading, Pottersville, Princeton, Princeton
Junction, Quakertown, Rahway, Ramsey, Randolph, Raritan, Readington, Red
Bank, Ridgefield, Ridgefield Park, Ridgewood, Ringoes, Ringwood, River Edge,
Riverdale, Rochelle Park, Rockaway, Rocky Hill, Roosevelt, Roseland, Roselle,
Roselle Park, Rosemont, Rumson, Rutherford, Saddle Brook, Saddle River,
Sayreville, Schooleys Mountain, Scotch Plains, Sea Girt, Seaside Heights,
Seaside Park, Secaucus, Sergeantsville, Sewaren, Short Hills, Shrewsbury,
Skillman, Somerset, Somerville, South Amboy, South Bound Brook, South
Hackensack, South Orange, South Plainfield, South River, Sparta, Spotswood,
Spring Lake, Springfield, Stanhope, Stanton, Stewartsville, Stillwater,
Stirling, Stockholm, Stockton, Succasunna, Summit, Sussex, Swartswood,
Teaneck, Tenafly, Tennent, Teterboro, Three Bridges, Titusville, Toms River,
Totowa, Towaco, Tranquility, Trenton, Tuckerton, Union, Union City, Vauxhall,
Vernon, Verona, Vienna, Waldwick, Wallington, Wallpack Center, Wanaque,
Waretown, Warren, Washington, Wayne, West Creek, West Long Branch, West
Milford, West New York, West Orange, Westfield, Westwood, Wharton, Whippany,
Whitehouse, Whitehouse Station, Whiting, Wickatunk, Windsor, Wood Ridge,
Woodbridge, Wyckoff, Zarephath
We are a leading provider of real estate valuations for the mortgage lending
marketplace in New Jersey and metropolitan New York including all five
boroughs. With many years of experience in the business, we have a proven
track record of producing quality appraisals and of reducing lenders time,
efforts and costs in managing the appraisal process.
We are a leading provider of appraisals for:
Primary and Secondary Mortgages
Mortgage Refinancing
Employee Relocation
Private Mortgage Insurance Removal
Estate Planning
Divorce Settlement
Our investment in training and technology has helped our customers greatly
reduce their workload. By offering on-line appraisal ordering, coupled with
automatic report status updates and electronic delivery of the final product,
we are able to eliminate the run around and phone tag hassles associated with
this process. And since this process saves us money as well, we can keep our
rates competitive with anybody in the industry.
Short Turn-Around Times
Highest-Quality Appraisal Reports
On-line Status Reports
Electronic Ordering and Delivery
Competitive Pricing
Through this web site, you can perform a number of tasks. Ordering an
appraisal is just a click of a button away. Or, spend some time and find out
a bit more about the appraisal business. The more you know, the better
decision you can make. And check back frequently, as our content is always
being updated.
What is an Appraisal
A real estate appraisal is a service performed by a licensed or certified appraiser, who develops an opinion of value based upon the highest and best use of real property. The highest and best use is that use which produces the highest value for the land, as if vacant. This use is based on 4 parts; physically possible, appropriate, legal, and economically feasible. Also of importance is the definition of the type of value being developed and this must be included in the appraisal, i.e. market value, condemnation value, quick sale value, etc. For mortgage valuations of improved residential property, this value is most often reported on a standardized form, the Uniform Residential Appraisal Report.
An appraisal is performed for a specific client, to whom the appraiser has a fiduciary responsibility, regardless of what party ultimately pays for the appraisal, whether anyone actually pays for the appraisal, or when the appraisal is paid for. Typically residential appraisers agree to accept orders from lending institutions with the understanding that payment will be made following settlement, or closing of the loan. In most cases, the homeowner or buyer ultimately pays for a residential appraisal, either directly or rolled into settlement fees.
In the USA, minimum appraisal standards and appraiser qualifications are the province of The Appraisal Foundation which is chartered by Congress.[ Through one of its boards, The Appraisal Standards Board (ASB), it periodically publishes the uniform Standard of Professional Appraisal Practice (USPAP). USPAP provides the minimum development and reporting standards an appraiser/appraisal report must meet. The Appraisal Foundation is also responsible for setting the minimum qualifications for appraiser licensure/certification through its other board, The Appraisal Qualifications Board (AQB). The AQB is responsible for establishing the minimum education, examination, and experience requirements for licensed/certified appraisers. Effective January 1, 2008, the requirements to become a state licensed or certified real property appraiser will significantly increase. State licensing was established in the early 1990s in the wake of the Savings and Loan "crisis".
The implementation of licensure and enforcement are state functions. In addition, there are appraisal organizations, private not-for-profits, some of which date back to the Great Depression of the 1930s, such as the American Society of Farm Managers and Rural Appraisers, founded in 1929.[ Others were founded as needed and opportunity arose in specialized fields, such as the Appraisal Institute and the American Society of Appraisers (founded in the 1930s) and the International Right of Way Association and the National Association of Realtors (after World War II). These organizations all existed to establish and enforce standards, but their influence has waned as the government increases appraisal regulation.
There are several professional organizations of appraisers in the US. They include the American Society of Appraisers (ASA), the American Society of Farm Managers and Rural Appraisers, and the largest, the Appraisal Insitute (AI). In addition to state licensing and certification, appraisers can earn professional designations from the above organizations.
Types of Value
Types of valueThere are several types and definitions of value sought by a real estate appraisal. Some of the most common are listed:Market Value – The price at which an asset would trade in a competitive Walrasian auction setting. Market value is usually interchangeable with open market value or fair value. However, the word "fair" is no longer in use when describing Market Value.International Valuation Standardds (IVS) define Market Value as: Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgably, prudently, and without compulsion. Value-in-use – The net present value (NPV) of a cash flow that an asset generates for a specific owner under a specific use. Value-in-use is the value to one particular user, which may be above or below the market value of a property. Investment value - is the value to one particular investor, which may be above or below the market value of a property. Insurable value - is the value of real property covered by an insurance policy. Generally it does not include the site value.
It is important to distinguish between Market Value and price. Market value is a fluid concept, ever changing, while price is a historical fact at the time of a transaction. A price obtained for a specific property under a specific transaction may or may not represent that property's market value: special considerations may have been present, such as a family relationship between the buyer and seller, or else the transaction may have been part of a larger set of transactions in which the parties had engaged. Another possibility is that a specific buyer would be willing to pay a price higher than the market value. Such situations often arise in corporate finance, as per example when a merger or acquisition is concluded at a price which is higher than the value represented by the price of the underlying stock. The usual rationale for these valuations is that the 'sum is greater than its parts', since full ownership of a company entails special privileges for the buyer for which he is willing to pay. Such situations arise in real estate/property markets as well (see value-in-use). It is the task of the real estate appraiser/property valuer to judge whether a certain price obtained under a certain transaction is indicative of market value.
Market value definitions in the US
In the US, "Fair Market Value" and "Fair Value" are commonly used as accounting terms. The equivalent appraisal term is "Market Value." (USPAP Advisory Opinion 8.)[citation needed] USPAP defines Market Value as "a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal".
Forming an opinion of market value is the purpose of many real property appraisal assignments, particularly when the client’s intended use includes more than one intended user. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories:1) The relationship, knowledge, and motivation of the parties (i.e., seller and buyer); 2) The terms of sale (e.g., cash, cash equivalent, or other terms); and 3) The conditions of sale (e.g., exposure in a competitive market for a reasonable time prior to sale). (Definitions: USPAP 2005.)
In the US, a typical definition of market value can be found on the FNMA residential appraisal forms, as the FNMA 1025, which states the following:DEFINITION OF MARKET VALUE: 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, knowledgeably 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 whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) 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.
'*'Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market’s reaction to the financing or concessions based on the appraiser’s judgment.(FNMA form 1025, March 2005.)
Types of ownership interest
Fee simple value - Leased fee value - Leasehold value -
Highest and best use
The highest and best use in real estate appraisal is the use that will render the maximum fair market value of a particular property. That use must be legally allowable, physically possible, financially feasible, and result in the maximum value for the property. The test of highest and best use is given to a property both as if vacant and as improved.
For example, "House A" in a residentially zoned area may have a highest and best use as vacant and a highest and best use as improved that are both the same. A similar "House B" in a commercially zoned area may have a highest and best use as vacant as a commercial lot and ''highest and best use as improved as a residence. If the value of the commercial lot as vacant in "House B" exceeds the value of house as a residence as improved plus demolition costs, the overall highest and best use of this property would be the as vacant value of a commercial lot.
Since vacant lots are not improved, such properties are generally given only the as vacant test.
The highest and best use is critical to real property valuation since in order to value a property at its fair market value, comparable properties with similar highest and best uses must be examined. In the "House B" scenario, comparing that house to other houses that do not have a similar highest and best use would result in an inaccurate value opinion.
In the US, the legally permissible aspect of highest and best use is very important. In some locations, the governing jurisdiction can use the "police power" concept to destroy illegally built improvements. This would obviously affect the market value of a property. This overall concept is logical, ie. a governing agency would be remiss to allow a toxic chemical plant to be built in the middle of a suburban area.
Three approaches to value
There are three usual approaches to determining the fair market value of a property: cost approach, sales comparison approach, and income approach. The appraiser will determine which of the approaches is applicable and develop an appraisal based upon information from each individual market area. Costs, income, and sales vary widely from area to area and particular importance is given to the specific location of the property.
Consideration is also given to the market for the property appraised. Properties that are typically purchased by investors (ie. skyscrapers) will give greater weighting to the Income Approach, while small retail or office properties (purchased by owner-users) will give greater weighting to the Sales Comparison Approach. Single Family Residences are most commonly valued with greatest weighting to the Sales Comparison Approach.
Cost approach
The Cost approach was formerly called the summation approach. The theory is that the value of a property can be estimated by summing the land value and the depreciated value of any improvements. It is the land value, plus the cost to reconstruct any improvements, less the depreciation on those improvements. The value of the improvements is sometimes abbreviated to RCNLD—reproduction cost new less depreciation, or replacement cost new less deprecation. Reproduction refers to reproducing an exact replica. Replacement cost refers to the cost of building a house or other improvement which has the same utility, but using modern design, workmanship and materials.
In most instances, when the cost approach is involved, the overall methodology used is a hybrid of the cost and market data approaches. For instance, while the cost to construct a building can be determined by adding the labor and materials costs together, land values and depreciation must be derived from an analysis of the market data. This approach is typically most reliable when used on newer structures, but the method tends to become less reliable as properties grow older.
The underlying premise of the cost approach in appraising market value is that building a substitute property is an alternative to someone who wishes to own such a property. While age is a fairly obvious constraint on that premise, developed urban areas present their own challenges. For instance, if there is little or no vacant land available in a neighborhood, the premise breaks down. Appraising land value is subjective when a scarcity of relevant land sales exists. But also, estimating construction cost is problematic because of an absence of similar construction from which to derive costs. Not only are building codes frequently changing in developed urban areas, but the small number of houses built do not allow the economies of scale available in a new development. The absence of land sales presents more than a data problem for completing the cost approach. The absence of such a market indicates that buyers may not be thinking in terms of building a new home as a substitute for buying an existing home, which tends to expose the unrealistic nature of the underlying premise. Building an individual new home also can be more difficult due to the difficulty in obtaining mortgage financing.
Observe that as the Cost Approach has non-market based components (costs), the approach may not be a good indicator of market value, even when new. This is most noticeable on properties where the market demand is limited. Say for example a military base. The cost to produce the base is not indicative of its market value, even when new. In the US, the government is the only party that would be willing to "buy" this product. This immediate "loss" is a form of obsolescence.
Also observe that this includes "home improvements" that do not recover their costs in the market. A common example in California is the cost of a pool. In most houses, the cost to build a pool is far greater than the increase in market value to the house. This immediate "loss" is again, a form of obsolescence. Accurately determining obsolescence and depreciation (as the property ages) are usually the main problems within the Cost Approach to open market value.
Notwithstanding, the latter challenge must be accepted for insurance purposes. Insurors are interested in insuring structures, not the value of the whole property.
Sales comparison approach
The sales comparison approach looks at the price or price per unit area of similar properties being sold in the marketplace. Simply put, the sales of properties similar to the subject are analyzed and the sale prices adjusted to account for differences in the comparables to the subject to determine the fair market value of the subject. This approach is generally considered the most reliable, if good comparable sales exist. In any event, it is the only independent check on the reasonability of an appraisal opinion.
Income approach or Income capitalization approach
The income capitalization approach is used to value commercial and investment properties.
In a commercial income producing property this approach capitalizes an income stream into a present value. This can be done using revenue multipliers or single-year capitalization rates of the net operating income. The Net operating income (NOI) is gross potential income (GPI), less vacancy (= Effective Gross Income) less operating expenses (but excluding debt service or depreciation charges applied by accountants).
Alternatively, multiple years of net operating income can be valued by a discounted cash flow analysis (DCF) model. The DCF model is widely used to value larger and more expensive income-producing properties, such as large office towers.
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