What is the purpose of an appraisal?

An appraisal is conducted in order to determine the value of an asset or property. It is commonly assessed upon purchasing a new home or vacant property.

Appraisers leverage the information they know about the market to determine the value of property or an asset. They may also take other aspects into consideration, such as the investment value. In the appraisal of property, the appraiser takes into consideration the supply and demand of the resources that exist on the land, as well as a study of utilization. Once the appraisal is performed, it can be used to sell an asset or property, or for financing and credit.