Appraisals: A Crucial Step in the Transaction Process
An appraisal is a valuation of property provided by a professional
appraiser, such as those designated by American Society of Appraisers. A professional appraiser will
prepare a comprehensive report that provides his/her
opinion of value at a given point in time for any type of property.
When it comes to real estate, the appraisal is the linchpin around which all else revolves. Both buyers and sellers are in a holding pattern until the appraiser arrives at the property, looks it over and comes back with a figure for what he or she thinks the house is worth.
Preparing an appraisal involves research, analysis of all pertinent information and the proper experience, knowledge and judgment to make a reasonable and supportable opinion of value. Often times, financial institutions will require an appraisal in order to lend money for a house.