Many people think that appraisals and assessments are the same thing. Although they both are an attempt to determine the value of a property or home, the similarities end there.
Appraisals are performed by licensed appraisers in an attempt to determine the value of a home or property for private purposes such as mortgages or refinances. A homeowner may hire an appraiser to determine how much equity their home has gained or a bank may have a property appraised to determine if the property has enough value to back a loan or mortgage. Appraisals for commercial properties are determined by how much it would take to build the property at that time. The income stream of a property such as a rental house is determined by how much an investment (the home value) would generate at a specific interest rate. While appraisals from different appraisers may differ slightly depending on the value each places on amenities, rooms and location, they are generally close.
Are you wondering “how much is my house worth?” I have two answers for you. First, if you don’t really need to move, it is worth whatever you say it is. If you think, “I wouldn’t sell this house for less than $300,000,” then it is worth that much to you. If you need to sell it, though, what it is worth to you is irrelevant.
