An appraisal is an unbiased opinion of value supported by market research. The opinion of value is provided by a professional appraiser with the necessary education, experience, and credentials. The appraisal process involves gathering market information in the appropriate areas and analyzing the information as it compares to the subject property. The professional judgment of the appraiser is used throughout the appraisal process to derive the final opinion of value.
An appraisal can be performed for any type of property such as vacant land, retail buildings, office buildings, industrial properties, shopping centers, convenience stores, religious facilities, and residential properties, like single-family homes, apartments, townhomes, and condominiums.
Appraisals are provided for a variety of reasons. The most common reasons are the sale or purchase of a property or to obtain a mortgage or property insurance. Other reasons to have an appraisal completed include:
- Determining a property’s sales price
- Tax assessments or appeals
- Lease negotiations
- Estate planning
- Refinance or to Obtain a Home Equity Line
- PMI (Private Mortgage Insurance) Removal
- Legal Issues such as a Divorce Settlement
- Eminent Domain or Condemnation Proceedings