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.
