Performing a real estate appraisal is the act or process of developing an opinion of value. A real estate appraisal provides an answer to a client's specific question about the value of a real property interest. A significant point to keep in mind is that appraisers do not create or establish value because only market participants, through their interaction, establish value. Value is never a fact; it is always an opinion. An appraiser's opinion of value reflects what market participants believe to be the value of a property.
The objective of a real property appraisal is to develop an opinion of the defined value of an interest in real estate. According to the Uniform Standards of Professional Appraisal Practice (USPAP), value is the monetary relationship between properties and those who buy, sell, or use those properties. The appraisal objective is to develop some type of value- market value, use value, investment value, etc. The objective of most appraisal assignments is market value. For more information on real estate appraisals, please visit our Learning Center.
Real estate appraisers must also be open-minded. Market value, which the appraiser seeks to estimate, is shaped by the needs, desires, and motivations of market participants, which may not conform to the real estate appraiser's personal preferences. AppraiserLoft appraisers are held to the highest industry standards. They work diligently to meet all deadlines and abide by USPAP and the law.