In its simplest terms, an appraisal is the development of an opinion of value for aiding a client in making decisions about a property. The value developed in an appraisal is a measure of the relative worth of the asset, expressed in terms of money.
Everyday, decisions need to be made about various types of real estate. This is often in conjunction with a residential or commercial real estate transaction to ensure that an agreed-upon purchase price reflects fair market value. By getting an appraisal, real estate state brokers and property owners can ascertain the value of a property they wish to sell, and prospective buyers can do the same for one they wish to purchase. Lenders typically require property appraisals as part of real estate purchase transactions, as well as when refinancing a property for an owner. Appraisal services are also commonly used in conjunction with development of real estate, taxation, divorce disputes and estate planning.