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Real Estate Appraisal

A real estate appraisal is a licensed appraiser's professional opinion of a property's value as of a specific date. Lenders use appraisals to decide how much they will lend against a property.

Appraisers use three main approaches: the sales comparison approach, which compares the property to similar recent sales; the cost approach, which estimates what it would cost to rebuild; and the income approach, used for rental property. For houses, the sales comparison approach usually carries the most weight.

In the United States, appraisals follow the Uniform Standards of Professional Appraisal Practice.

Home size is a major input in an appraisal. For most US mortgage appraisals, the appraiser reports gross living area measured under ANSI Z765.