What an Appraisal Is and Isn’t

An appraisal is an opinion of value prepared by a state-licensed or certified appraiser that complies with the Uniform Standards of Professional Appraisal Practice (USPAP). It involves assessing various factors such as location, size, condition, amenities, comparable sales, and market trends to arrive at an accurate valuation. Appraisals use standardized methods and techniques to provide unbiased and reliable opinions of property value. These appraisals are essential for various purposes, including buying and selling real estate, securing financing, property tax assessments, insurance, legal disputes, and investment analysis.

An appraisal is NOT a “Professional Home Inspection”. The term “Inspection,” as typically used in an appraisal report, differs from the level of inspection required for a “Professional Home Inspection.” An appraiser is not a building inspector or an expert in construction materials. Therefore, the inspection conducted by the appraiser does not encompass a full assessment of the electrical, plumbing, mechanical systems, floor structure, sub-floor, foundation, roofing, siding, etc. Instead, the appraiser’s assessment is based on a visual inspection of the property and information obtained from parties involved in the appraisal process or research conducted during the analysis. The purpose of the appraisal is to provide an economic evaluation of the subject property.

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