Real Estate Glossary

An appraisal is a professional opinion of the value of a property, typically conducted by a licensed appraiser. Appraisals are often used when buying or selling a home, as well as for other purposes such as determining property taxes or refinancing a mortgage.

During an appraisal, the appraiser will inspect the property and consider factors such as the home's condition, size, location, and amenities. They will also research recent sales of similar properties in the area, known as "comparable sales," to help determine the property's value.

It's important to note that an appraisal is not the same thing as a home inspection. A home inspection is a more thorough examination of the condition of the property, while an appraisal focuses solely on the property's value.

It is also crucial to understand that appraisal value might be different than market value. An appraisal is a professional estimation, market value is the price point agreed upon by buyers and sellers in the current market. Sometimes, the appraisal value may be lower than the agreed-upon market price, in this case, a potential buyer may have to pay more or come to a compromise with the seller or the lender.

In summary, an appraisal is a professional opinion of the value of a property, and it is conducted by a licensed appraiser. An appraisal is often used in real estate transactions, and it can also be used for other purposes such as determining property taxes or refinancing a mortgage.