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Appraisal is the process of estimating the fair market value of an asset. Appraisals are routinely required for real estate transactions. An appraiser should be a certified professional, and he or she must be an independent party to the transaction in order to avoid potential conflict of interest. Real estate appraisers use methods that are common in local practice, such as the comparable-sales method.
Appraisal value
Appraisal value is the market value of an asset that is derived from the appraisal process. Depending on the asset, the method used to appraise the asset will differ. For homes, appraisers often use the comparable sales method that incorporates recent sales data of comparable homes. They may also use the replacement method, which is the cost to replace the home at today's prices.
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