A real estate appraisal, also known as a property appraisal appraiser or land appraiser, is the practice of assessing the value of real property on the land, usually its market value, use value, insurable value, investment value and liquidation value. These should be done to know the correct value of a property before making decisions.

A real estate appraisal is very important for investors. An appraisal is a third party that will come in and decide on the value of a property. You will survey the interior and exterior of the property and other properties in the area and then proceed to determine how much the property will be worth. An appraisal is done for both buyers and sellers because, while the buyer does not want to overpay for a property, the seller does not want to sell their property for less than it is worth. It is highly recommended to buy or sell a property after it has been valued by an appraisal.

The property valuation is carried out by an approved or qualified appraiser (also known as an estate appraiser or land appraiser in most countries and in British English as an “appraisal surveyor”).

Real estate appraisal is done using various methods such as: cost method, income method and sales comparison method.

The cost method involves the estimated cost of property improvements, land value and impairment factors.

The income method is used to value commercial and investment properties. This approach is generally considered the most applicable valuation technique for income-producing properties.

The sales comparison method compares the sales prices of similar properties that have recently sold.

Doing a proper appraisal with several methods explained above will help you know the correct value of a property so you don’t overpay for a property or sell it for less than it’s worth.