Real estate appraisal (“property valuation”) is the process of developing a perspective of value for real property. This is the market value —i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently, and every property is unique in features and characteristics. An appraisal helps with various decision points. The seller can use it as a basis for pricing, the buyer can use it as a gauge on which to base an offer, and lenders use appraisals to determine how much money to credit their borrowers. The important factors in a house appraisal are: • Dwelling type (e.g., one-story, two-story, split-level, factory-built) • Features (including design) — materials used and the kind 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 Condition, of course, is a crucial factor in valuation. Location is also a factor; however, as a property cannot change location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. His or her job is to determine an estimated value by inspecting
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