Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.
Phonetics: ap·prais·al ə-'prā-zəl\
An appraisal is an estimate of the value of property, made by a qualified professional called an "appraiser". Part of the reason for our current loan crisis, is that many appraisers were coerced into inflating the market value of homes on paper. Some appraials are done by making a careful inspection of the inside and outside of the house, checking for damage to plumbing, and other infrastructure. Other appraisals are called, "Drive-bys" wehre the appraiser does a very quick assessment of the house without even going inside. After the inspection is done, the house is compared to what other houses of similar size and quality are selling for in the area and a dollar value is then assigned. One problem with the appraisal system is that what a building appraises for in 2006 can be very different from what it would be sold for in 2010 in a volatile market.Thesaurus / Related Terms