A real estate appraisal is the valuation of how much a home is worth by a 3rd party.  An appraiser considers a site, its amenities, and the physical condition of the property  when determining a home's value.  These factors are then compared against other properties (similar to yours) in the area around your home that have recently sold.  By comparing all of these factors, the appraiser determines an estimate of what he or she thinks that the property could sell for (what it is worth).

Be assured that the property inspection is only the first step to an appraisal.

After the physical inspection, the appraiser spends a considerable amount of time researching and collecting data about the area before arriving at a final  value.  The decision should be a well researched and proven one.  An appraiser's decision can make or break a refinancing or an estimated selling value - make sure that your appraiser has a solid reputation and is reliable.

Reasons For An Appraisal
There are many reasons to get a real estate appraisal. The most common reason is for housing and mortgage transactions.  Here are some of the other reasons that you may need an appraisal:

• to lower your tax burden
• to establish the replacement cost of insurance
• to contest high property taxes
• to settle an estate
• to help you acquire a loan to purchase a home
• to provide a negotiating tool when purchasing real estate
• to determine a reasonable price when selling real estate
• to protect your rights in a condemnation case
• because a government agency such as the IRS requires it
• you are involved in a lawsuit

How You Can Help The Appraiser?
Once you have decided that you need an appraisal and you have selected the appraiser that you would like to work with (your real estate agent can often recommend a credible and reliable appraiser in your area), be prepared to answer the following questions and/or provide the following information:

• What is the purpose of the appraisal?
• When do you need the appraisal completed by?
• When did you purchase the property?
• What personal property, such as appliances, furniture, etc.. should be included in the appraisal?
• What improvements to the property (if any) have you made and when did you make them?  For example, did you build a deck or add on a room since you purchased the home?
• Provide a copy of deed, survey, purchase agreement, or other pertinent papers pertaining to the property.