1) It is an objective opinion of value. It is not an exact science. If three appraisers appraised the same property, they might assign three different estimates of value. 2) Most sellers, buyers and lenders want an appraisal that reflects the market value rather than the insured value, assessed value, sentimental value or other types of value. 3) An appraiser's estimate of value typically reflects the current market conditions in the subject property's marketplace. This can change dramatically if market conditions shift. 4) The appraiser's estimate of value reflects the most probable price the property will sell for without special considerations or circumstances. 5) The best indicator of market value for residential property is found by applying the sales comparison approach. 6) Most lenders base a buyer's loan amount on either the sales price or the appraised value of the property; whichever is less. 7) Many homebuyers today are writing their offers to purchase subject to the property appraising at or above the sales contract price.
