Appraisal Methods
An appraisal is an opinion, or estimate of value. This opinion or estimate is derived by using three common approaches. They are:  cost approach, income approach and comparison approach.  The most common of these three is the comparison approach.

When To Order an Appraisal
There are many reasons to obtain an appraisal. The most common reason is for Real Estate and Mortgage Transactions:

• To establish a value in order to begin the mortgage loan process.
• To establish a value in order to set a selling price for your home.

Home's Market Value
In the real world, very few individuals order appraisal reports to establish an offering price or to substantiate a purchase price.  A homes actual value is a very important part of any real estate transaction.

Appraisal Needed To Obtain Loan
Usually, individuals applying for a loan are only interested in the end result, the funding or there mortgage loan, it is usually necessary to acquire an appraisal to establish a solid value to base the loan amount on.

Helping the Appraiser
Once you or the mortgage company have selected an appraiser, be prepared to answer questions and provide any information that will help the appraiser complete the appraisal as fast and accurately as possible.