A real estate appraisal is an independent, objective evaluation of a property's market value performed by a certified, licensed real estate appraiser.
Lenders require appraisals before approving mortgage financing to ensure that the physical property provides sufficient collateral value to secure the loan amount. If the buyer defaults, the lender relies on the property value to recover the outstanding balance.
Appraisers evaluate: - Recent comparable sales ("comps") of similar nearby homes sold within the last 3-6 months. - Square footage, lot size, bedroom/bathroom count, architectural quality, and physical condition. - Neighborhood trends, municipal zoning, and local amenities.