Facts About Residential Real Estate Appraisals

Preparing an Appraisal Report is an Important Part of a RealEstate Transaction

In general, A real estate appraisal helps to establish a real property's market value–the likely sales price it would bring if offered in an open and competitive real estate market.

Chartered banks and any other lender will require an appraisal report when an applicant ask to use a home or other [real estate] as security for a loan, because they want to make sure that the property will sell for at least the amount of money it is lending.

Some times the average consumer confuses a comparative market analysis, or CMA, with an appraisal.

Real estate agents use CMAs to help home sellers determine a realistic asking price. Experienced agents often come very close to an appraisal price with their CMAS, but an appraiser's report is much more detailed--and is the only valuation report a bank will consider when deciding whether or not to lend the money. The reason is that an appraiser will prepare the report only on the recent market evidences that can support a final value but realtors are using their market sense and active listings to arrive a listing value which is different than appraised value. 

What is on a Residential Appraisal Report

About Appraisers and Appraisals

Residential Appraisal Methods.
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An Appraisal Isn't a Home Inspection!

Appraisers make notations about obvious problems they see, but they are not home inspectors. They do not test appliances, look at the roof, check the chimney or do any other typical home inspection tasks. Never count on an appraisal to help you determine if the home is in good condition