What is a Real Estate Appraisal?
"In theory, at least, appraising is a simple concept to grasp. An appraisal is a supportable estimate of property value."
Ventolo and Williams- "The Art of Real Estate Appraisal"
An appraisal provides a basis of value for a decision concerning real property. So, the use of an appraisal depends on the decision the client wishes to make.
An appraisal may be requested in a number of situations:
Transfer of Ownership:
- To help prospective buyers set offering prices
- To help prospective sellers determine acceptable selling prices
- To establish a basis for real property exchanges
Financing and Credit:
- To estimate the value of a property to obtain a mortgage loan
- To eliminate PMI associated with certain mortgage loans
Investment and Tax Matters:
- To estimate assessed value
- To determine gift or inheritance tax
- To arbitrate between adversaries
- To value Partial Interest variations
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