An appraiser is a person qualified by education, training, and experience. In many states they are required to have a real estate license and also go through a certification process.

As most Realtors know, an appraisal is a professional opinion of market value based upon an interpretation of facts and judgments and their processing into an estimate of value, as of a stated date. An appraisal is required by most lending institutions when a property is sold with financing. This opinion should be unbiased and based on current market indicators.

In the event that an appraisal comes in lower than the sales price, buyers, sellers and Realtors are affected. You may dispute the report, however, getting an appraiser to change it is very difficult. Unless you can find better comparable sales, the value will stay the same. Remember, an appraisal is based on historical data comprised of “closed sales”, not the currently priced homes for sale in the neighborhood. Most appraisers are required to utilize comparables that have sold within the last six months.

An appraisal is an extremely helpful tool to use in making an informed decision when buying a home. A lending institution will only lend based on the appraised value, preventing the buyer from overpaying. This is an excellent safeguard in the purchasing process. Many buyers insist that their contract to purchase is contingent on the property appraising for the agreed upon sales price and no less.

Part of the buyer's negotiating strategy should be based upon maximum appraised value. No one will pay more for a property than what it’s worth.

The appraisal may also be used as a bargaining tool with the buyer. If the appraiser feels it's worth it, so should the buyer.