Real estate, whether it's a home or commercial property, is likely the most important – and most expensive – purchase a person or company will make. Buyers want to be sure they are paying fair market value. Since an appraiser has no stake in the sale or purchase of the real estate, he or she can provide an objective opinion as to value.
An appraisal by a qualified, state-licensed appraiser can help a buyer of real estate make an informed decision with regard to offer price. In fact, banks and mortgage companies require an appraisal to protect their own interests and ensure that they are not lending more money than the property is worth. They also perform an appraisal when borrowers apply for refinancing or home equity loans.
Most people associate appraisals with home purchases, but appraisals are helpful to both individuals and companies in several other situations, including:
The cost of an appraisal often pays for itself in the peace of mind achieved by knowing the fair value of the property or the savings achieved in a tax appeal or elimination of PMI.