An appraisal is a written estimate of a property’s market value completed by an appraiser (the appraiser is a licensed and insured objective third party whose job is to give their professional opinion regarding the market value of the home). The value is based upon a market analysis of recent sales prices for similar properties in the area, and the property’s physical condition.
Obtaining an appraisal is a condition of the buyer’s loan. The value established by the appraiser assures the buyer is not over paying for the property and the lender is not loaning more than the home is worth.