What Is An Appraisal?
In real estate, an appraisal is an estimate or determination of value of real property. An appraisal is an authoritative opinion of value of real property conducted by an accredited professional for use in lending, law and insurance.
Who Performs An Appraisal?
A real estate appraisal is typically conducted by a licensed or certified real estate appraiser. In the United States, licensed appraisers are certified by the state. Real estate appraisers may specialize by property type or market.
Why Would An Appraisal Be Needed?
The need for a real estate appraisal can arise in a variety of situations. Lenders may require an appraisal before lending on a property which occurs when a buyer borrows to purchase real estate, or an existing owner wishes to refinance a property.
Other situations that may require an appraisal include establishing a value to reassess a property's tax liability, or settling disputes and estates.
Types of Real Estate Values
Since appraisers can be called upon to determine the value of real estate in a variety of situations, the appraisal may take different approaches to determining value with different levels of detail. Appraisals may be used to determine market value, replacement cost, or even a property value at a point in time in the past.