What is an Appraisal?

An appraisal is an expert opinion of the value of a piece of property. The value usually sought is the property's market value.

The preparation of a real estate appraisal involves research and in-depth knowledge of market areas; analysis of information applicable to the property being appraised; and the experience, knowledge and professional judgement of the appraiser.

Market information and information specific to a property is collected and analyzed to develop opinions of value. The information and opinion of value is compiled into a detailed report that is given to the end user.

Reasons for performing a real property appraisal are varied. They are usually required whenever real property is sold, mortgaged, taxed, insured, or developed. Appraisals can be prepared to determine:

• value for mortgage or lending purposes
• value of property being bought or sold
• future value of property being built
• value to assist in investment decisions
• value to measure property tax assessments and other taxes
• verification of damage claims resulting from fire, rain, hail, windstorms and other disasters
• value of property to determine compensation where property is to be expropriated
• value of property involved in litigation