A home purchase is the largest single investment most people will ever do. Whether its a primary residence, a second vacation home, or an investment the purchase of real estate is a complex financial transaction that requires multiple parties to pull it all off.
So who makes sure the value of the property is in line with the amount being paid?
There are too many people exposed in the real estate process to let such a transaction proceed without ensuring that the value of the property is commensurate with the amount being paid. This is where the appraisal comes in.
An appraisal is an unbiased estimate of what a buyer might expect to pay – or a seller to receive – for a parcel of real estate, where both buyer and seller are informed parties. To be an informed party most people turn to a licensed, certified, professional appraiser to provide them with the most accurate estimate of the value of their property.