An appraisal is an opinion of value developed by a real estate appraiser. A common type of appraisal assignment is the development of market value. For example, lending institutions order an appraisal to determine the market value of a home for collateral evaluation purposes.
Why do i need an appraisal?
When the value of your home or other real property is being used to make a financial decision, an appraisal can help. If you are selling your home, an appraisal can help you determine an appropriate asking price. If you are buying a home, it can ensure that you are not overpaying. If you are involved with an estate settlement or divorce, it can assist in dividing the property fairly. A home or investment property are often the largest asset of a person, so knowing the true value means you can make the right financial decisions.
Is an appraisal the same as a home inspection?
No. A real estate appraiser is not a home inspector. Appraisers observe properties at a surface-level while inspectors examine properties from top to bottom. In other terms, inspectors determine condition while appraisers develop an opinion of value.
How much does an appraisal Cost?
The cost of an appraisal depends on its purpose, use, and other complexities (size of house, distance, availability of data, etc). A typical single family residential appraisal costs $600-$750.