In case of mortgage or property an appraisal means the evaluation of the market price of real estate prorpty including mobile home. Through it we can get a estimate of the price which can be obtained by selling the property in the competetive real estate market. Apprasal is required when you are willing to take a new mortgage loan against the same property. It is also required when you are refinancing your current mortgage with a new mortgage loan or home loan.

Your lender need this appraisal just to ensure that the property or the house will be sold out at the amount which the lender is offering as loan. The lender or the bank who is offering the loan needs an assurance that if any borrower becomes defaulter then they can make up the amount by selling the property. That is the main reason a appraisal is done on the home which is kept as security for the loan.

An appraisal is very much different from home inspection. The person who does the appriasal take notice of all the various problems in the property but the appraisers don’t test appliances or don’t inspect different areas in the property.

An appraisal report generally consist of the following 7 points:

1. All the details of the property which is under appraisal.
2. A comaparions of the property with the 3 other properties in the neighbohood.
3. Evaluation the realestate market in the area where the proprty is located
4. Type of the area where the property is located.
5. Estimate of the average sales time needed for that property.
6. Comments of the appraiser’s which can make impact in the property value.
7. Instruction on the defects in the property including the foundation.