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Real estate appraisal is the practice of developing an opinion of the value of real property, usually its Market Value. (Real estate appraisal is American usage; many other countries use the terms property valuation or land valuation.) The need for appraisals arises from the heterogenous nature of property as an investment class: no two properties are identical, and all properties differ from each other in their location - which is the most important determinant of their value. So there cannot exist a centralised Walrasian auction setting for the trading of property assets, as there exists for trade in corporate stock. The absence of a market-based pricing mechanism determines the need for an expert appraisal/valuation of real estate/property.
A real estate appraisal is performed by a licensed or certified appraiser (in many countries known as a property valuer or land valuer). If the appraiser's opinion is based on Market Value, then it must also be based on the Highest and Best Use of the real property. For mortgage valuations of improved residential property in the US, the appraisal is most often reported on a standardized form, such as the Uniform Residential Appraisal Report. Appraisals of more complex property (e.g. -- income producing, raw land) are usually reported in a narrative appraisal report.
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It has been a week of tumult and turmoil for Washington Mutual and First American, since New York State Attorney General Andrew Cuomo initiated a lawsuit against First American and its real estate appraisal arm, eAppraiseIT alleging an illegal practice of inflating the values of homes to qualify for loans.
We help the public, lenders and courts to determine market value of Real Estate. We offer appraisals for Purchase, Refinance, Divorce,Tax and Court transactions.
New York's attorney general today sued a major real estate appraisal company for allegedly colluding with Washington Mutual to inflate the value of thousands of homes, the first strike in a widening investigation of allegedly fraudulent practices that contributed to nationwide troubles in the housing market.
To begin with let us first look at what a real estate appraisal means. Simply, it is a judgment of property value. This value is arrived at by a certified or licensed appraiser by following process of analytical comparison along with use of comparable sales and information regarding the property that is appraised, its neighborhood & community.