Real estate appraisal is the process of developing an opinion of the dollar value on a piece of real estate property. The overall goal is to develop the true and real market value of the property in question. The need for an appraisal agent arises because of its high profile investment class. No two properties are identical, and all properties differ from each other in their location. This is why appraisal in a property must consider an abundance of factors.

A real estate appraisal is performed by a licensed or certified appraiser. Many qualified and reliable appraisals attempt to acquire the true market value of the property. It is important to know the difference between market value and price. A price paid for a property may or may not represent that property's market value. Special arrangements may have been made, such as a relationship between the buyer and the seller. It is the task of the real estate appraiser to judge whether a specific price obtained under a specific transaction is accurate of the market value.

Let’s take a moment to definition the value used in an appraisal analysis. Selecting comparable data for use in the analysis is critical for establishing fair market value. The most commonly used method is the "sales comparison" approach. This approach examines the price or price per square foot of similar properties being sold in the area. In other words, the sales of properties similar the property in question will be noted. The sale price is then adjusted to show the differences in the comparables. You’ll find this approach is generally considered the most reliable method of appraisal.

Purchasing a home, land, or commercial property is the single largest investment that you will make in your lifetime. There is a lot of people involved in your transaction including Real Estate agents, banks and lawyers. Combine that with changing property values, market trends and new laws. Real Estate appraisers can make sure you get a fair deal. When you hire an appraiser, you're hiring a professional you can trust.