99% of the time the appraisal is used to determine market value (opinion of value). Most appraisals are done for banks. Market value is the price that a typical buyer would be willing to pay for your home. It is found by finding sales of similar properties to yours that sold in […]
Written on Saturday, July 12th, 2008 by mitcheljacobson :: 0 comments to this post
99% of the time the appraisal is used to determine market value (opinion of value). Most appraisals are done for banks. Market value is the price that a typical buyer would be willing to pay for your home. It is found by finding sales of similar properties to yours that sold in the past year, or longer if there weren’t many sales. This assures the bank that if you don’t make your payment that they will be able to get there money by selling the property. Most states require an appraiser to have a license, especially for appraisals for banks and other federally related transactions. There are other values that can be determined by an appraisal. (Example: investment value, used for determining an opinion of value for property or real estate investors)
I was surprise but the wikipedia site had some info that wasn’t too bad. Check out the links below if you want a bit more information…
http://en.wikipedia.org/wiki/Real_estate_appraisal
http://en.wikipedia.org/wiki/Real_estate_appraisal
Hope this helps… and by the way, there is also something called a market analysis. That is the opinion of value given to you by a real estate agent.
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