A real estate purchase appraisal is conducted by a private practice licensed appraiser for the purpose of determining the current market value of a particular property at a particular time based on the recent sales in the nearest vicinity to that property. The appraisal serves to indicate whether the purchase price on a contract reflects a deal, a fair market value, or that the negotiated price is more than what similar properties have recently sold for.
Broker, Carolina Connections Team
Keller Williams Realty
There are many other differences between the two kinds of appraisal. What exactly are you trying to find out. When I know, I can give you a better answer.
Real Estate Purchase Appraisal = Done by your Bank to determine if the house you are buying or refinancing is reasonably worth what the sales price is. This is MUCH more detailed. An actual State Licensed Appraiser goes to the property. Takes measurements. Takes photos and documentation about the condition of the property and the features of the home. Then they do their computer analysis to document recent sales in the area. And they come up with what their opinion is of the Market Value and/or Replacement Value of the property. They give a value to the LAND and a value to the STRUCTURES. Added together, this is what is generally referred to as the "APPRAISED VALUE."
You can imagine, that if one neighbor has just renovated their kitchen and landscaping, and another neighbor has not-- those homes may have the SAME TAX VALUE, but different APPRAISED VALUES.
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I believe you mean tax assessment? The assessment is a value that your local municipality will place on the property for tax purposes. The assessment does not represent actual value although it may be near the actual value. The lender appraisal is what they think the home is worth based on what similar homes in the area are selling for.