A real estate appraisal is necessary any time you buy or sell any kind of real estate. The
purpose for an appraisal is to find out the value of a piece of property. Banks and other
lending institutions require an appraisal on real estate before they will lend the money to
purchase the property.

Not only can a real estate appraisal give a fair and accurate value to the property, it can
also, in some circumstances, determine the best use of the property, which can alter the
value of the property dependant on the use of the land. For example, one time farming
land may now be on the edge of prime commercial property, causing the value of the land
to rise exponentially. An acre of farmland in a certain county may normally sell for
$2000, however, if that same acre were rezoned as commercial, it may bring over
$10,000.

An appraiser is similar to an inspector in that they are both looking for things that will
bring value to the property, however an inspector is looking for things that must be
corrected before the property can be sold. The appraiser is wanting to put a value on the
property in its current condition. An appraiser may possibly be willing to volunteer the
possible increase in value if certain problems were corrected or things were changed, but
that is not their primary function.

A real estate appraisal is always based on the best use and highest value of the property.
In other words, if your home is located in a commercial zone, the appraiser is likely going
to determine the value based on commercial property, not residential. This is in the best
interest of the seller of the property. There are instances in which a property may be
zoned both residential and commercial and the value assessed in those instances will
depend on the appraiser and the situation.

When you are in the market for a real estate appraisal, the following things will be
considered by the appraiser in determining the value of the property. The appraiser looks
for the assets, as well as the detriments, of the property. Gross living space, quality of
construction, location, layout, the number of bedrooms and bathrooms, the lot size,
condition of the home and land, central air conditioning, landscaping, number of
fireplaces, decks, pool, fencing, recent renovations, amenities provided by the
surrounding neighborhood, and crime statistics of the area are all considered by the real
estate appraiser. Overall condition of the exterior and interior of the home are great
factors in the valuation of the home as well. The appraiser usually only considers
permanent structures with the valuation of the home. Portable outbuildings, above-
ground pools, playhouses, etc are generally not included in the appraisal of the home.

If you are a seller, you should point out to the appraiser any amenities that are not easily
discernable to the appraiser such as things that are covered now but easily uncovered.
Things such as hardwood floors underneath wall-to-wall carpeting need to be addressed
with the appraiser.

Selling a home without an appraisal is not a very smart thing to consider. Appraisals will
almost assuredly work in your favor and enhance the value of the property that you are
trying to sell.