Definition of "Appraisal"
An Appraisal is the evaluation of a real estate property made by a neutral third party expert known as an Appraiser.
There are a number of reasons a home Appraisal is done:
- To develop a realistic market price
- To set the property market value at the time of death of its owner, when dealing with inheritance disputes, or at the time of breakup, when dealing with divorce settlements
- To divide the real estate value between the property and structural improvements
- To establish insurable values of the property
The Appraisal process gathers important data regarding the conditions of the property itself and its surroundings in order to provide an estimated value of the house.
The Appraisal process usually takes 2 weeks to be completed. Once the Appraiser collects all the information needed for his calculations, he makes his evaluation and discloses its results to all parts involved in the Appraisal.
Real Estate tips:
Was your house appraisal off by a lot? Know When to Dispute Your Home Appraisal!
Now that you know what is a home Appraisal, you can improve your real estate vocabulary even more by going through our Glossary Terms!
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