Appraisal

The process in which a licensed or authorized person gives an estimate of property value -- fair market value. Fair market value is the price a property would sell for on the open market.

Real estate appraisals are provided by real estate brokers or others who have been specifically trained for that purpose. You may want to know the real market value of your property for the purpose of property insurance, selling or leasing your home, contesting a property tax assessment, etc. Your lendor will require an appraisal when you initially get your mortgage, when you buy a piece of property, or when you refinance it. Lendors differ in their requirements. One lendor may require a new appraisal if the previous appraisal is more than a year old, while other lendors might have a 3 year standard. Each lendor generally uses the appraiser of their choice, but the cost will be your responsibility.

Appraisals are based on a number of factors, including, but not limited to the condition of the house, both structurally and visually, the quantity and quality of bedrooms and bathrooms, and the special features of the home, such as a swimming pool, gazebo, etc. Also of concern are the location, access to road and services, and the comparative values of similar sized homes which have been sold recently in the neighborhood.

FAQ:
The Uniform Standards of Professional Appraisal Practice

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