what is an appraisal

An appraisal is a fair market valuation of property, such as real estate, a business, collectible, or an antique, by the estimate of an authorized person. It is an unbiased professional opinion of a homes value and is required whenever a mortgage is involved in buying, refinancing, or selling property. The process involves a qualified appraiser creating a report based on an in-person inspection, research into recent sales of similar properties, current market trends, and the details of the home. The appraisal gives useful information about the property, describes what makes it valuable, and may show how it compares to other properties in the neighborhood. An appraisal is used to estimate the value of items that are infrequently traded and are often rare or unique. It is a written document that shows an opinion of how much a property is worth. The cost of an appraisal for an average home usually ranges from $300 to $450, which is typically paid by the buyer. If the appraisal value is lower than expected, the transaction can be delayed or even canceled.