What is an appraisal
An appraisal is an estimation of a business or a property such as real estate, or an antique, by the judgment of an authorized person. To create a legitimate appraisal, the authorized person must have a classification from a regulatory body governing the jurisdiction of the appraiser. These estimations types are usually applied for tax purposes or to ascertain a potential sale price for the assets in question.
The appraiser can use any number of estimate techniques to determine the relevant value to assign, including the current market value of similar features, quality of the property and valuation models. Appraisals are used in property transactions to help lenders decide the value of properties they are being asked to finance. If a house appraisal comes in under the amount of the property price, mortgage lenders are inclined to refuse to fund the contract. Except if the proposed buyer is prepared and capable to come up with the difference between the appraised value and the lender’s financing proposal, the transaction will not go ahead.