at and what a buyer is willing to buy at, when you have a lender involved, it becomes "at what value a lender is willing to lend against". This is why lenders perform appraisals. Unfortunately however, I can hire 3 appraisers to appraise the same piece of property and many times the values of all 3 appraisals will be different from each other - but they should be close. Since an assessed value is for taxing purposes only, it can be much more or much less than the market value. Most home owners believe mistakenly that they should be the same, but usually they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the appraisal.
PROFESSIONAL APPRAISAL
No tools or books determine the exact price a piece of real estate will ultimately sell for. The final determination is what the home actually ended up selling at (within the scope of market forces and appraisals from a lender if the home is going to be financed). Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“property valuation”) is the process of arriving at and developing a perspective of value for real property. This many times (but not always) is also close to it's market value — i.e., what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions generally require appraisals because the same property does not sell every day or month or even every year, they happen infrequently. Every real property is unique in features and characteristics and the market is constantly
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