An appraisal is an opinion or estimate of a property's value. It is an evaluation determined by someone qualified to estimate the value of real property. Both organizations hold their members to rigorous standards. Certifications are based on continuing education requirements, ethical standards, and grievance and enforcement procedures.
Most lenders require a property appraisal for a new mortgage loan.
This appraisal, which attempts to justify the contract price to the lender, usually takes place after the contract between buyer and seller has been finalized. The appraiser is usually given the contract price before he proceeds. Appraisals are also performed to determine a reasonable offering price in a sale, property value for estate tax purposes, value of land versus the structure, and for insurance and tax purposes. An Appraisal Report describes the results of the procedure. Reports can be presented many ways, including oral, written, narrative, letter or form style.