price.
PROFESSIONAL APPRAISAL
Real estate appraisal (also known as “property valuation”) is the process of developing an opinion of value for real property. This is the “market value,” or what a willing reasonable buyer would pay for the property to a willing reasonable seller. Real estate transactions almost always require appraisals because they occur infrequently on a given property and every property is different or unique in features and characteristics. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it as the basis for an offer. Lenders use appraisals to know how much money to credit to their borrowers. • dwelling type (e.g., one-story, two-story, split-level, factory-built) • features (including design); materials used and the type of structure present and how they were built • improvements made • comparable sales • location—type of neighborhood, zoning areas, proximity to other establishments • age of property • size • depreciation The most important factors in a house appraisal are:
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