Property Valuation
Appraisal is the estimation of value, which is the consideration, systematic analysis, and recording of actual data about an asset
In other words, property valuation is the opinion of an appraiser about the value of a property who has the skills, experience, knowledge, and expertise in valuation.
Value
An estimate is an estimate of the value of an asset or an estimate of the expected future benefits of the asset. Appraisers may give different opinions on the value, which are not necessarily the same, depending on which appraiser has more information to gather.
Valuation Purpose
- Buy – Sale
In real estate transactions, just like in the sale of general goods, buyers always want to buy at the lowest price, while sellers want to sell at the highest price. This is why there must be a middleman involved, namely the appraiser. The appraiser does not have a vested interest in either party by offering a fair value and providing an opinion on the value of the property, which will help the buyer and seller agree to buy and sell the property together.
