What is an appraisal? The process is a systematic prodecure employed to arrive at an estimate of value and convey that estimate to the appraisal user. The most common purpose of an appraisal however, is to estimate market value. To arrive at the estimate of the value, these steps involved are:
-Definition of the problem; the appraiser and the client must be in accordance to; the type of value to be estimated, property involved, specific property rights being appraised, use of the appraisal, and effective date of the appraisal.
-Data selection and collection
-Highest and best use analysis; legally permissible, physically possible, financially feasible, and maximally productive.
-Application of the three approaches to value; sales comparison, cost, and income.
-Reconciliation of value indications into a final value estimate
-Report a defined value
http://www.startremodeling.com/home_appraisal.htm
This site explains what a home appraisal is and typically what is looked at when appraising the property.
http://www.youtube.com/watch?v=UzpU9TG1--4
This video tells us the key reasons for an appraisal and also that there is a difference between an appraisal and an inspection, but it is important to have both.
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