Appraisal Basics
An appraisal of real estate is the valuation of the rights of ownership. The appraiser must define the rights he intends to appraise.
Appraisal Methods
An appraisal is an opinion of value or the act or process of estimating value. This opinion or estimate is derived by using three common approaches, all derived from the market. They are:
When To Order an Appraisal
There are many reasons to obtain an appraisal. The most common reason is for Real Estate and Mortgage Transactions, but we have compiled a list of other reasons you may need to order an appraisal:
Home's Market Value
In the real world, very few individuals order appraisal reports to establish an offering price or to substantiate a purchase price.
Appraisal Needed To Obtain Loan
Usually, individuals applying for a loan are only interested in obtaining the loan and unfortunately are not worried about the prudence of buying the property at the agreed price.
Helping the Appraiser
Once you have selected an appraiser, be prepared to answer questions and provide requested information.
