The Anglo-Saxon Chronicle reports that in 1086 King William “sent men all over England to each shire to find out what or how much each landholder had in land and livestock and what it was worth.” We have been doing real estate appraisals ever since, and many occasions in our daily lives call for appraisals.
Home sale or purchase
Banks and mortgage lenders generally require a professional evaluation of a home’s worth before they will loan money against the value of the property. Persons trained to make appraisals and licensed by the state to do so are hired to survey the property and report their third-party evaluation of land and holdings based in part upon a survey of comparable properties nearby.
Family trusts, estates and wills
In the process of creating a family trust or a will it is common practice to set a value on any and all real properties that will be part of the estate, trust, or will. The legal description of property in a trust or an estate frequently includes the work of appraisers estimating value of any real estate described in the legal document.
Mortgage refinance
Banks are offering loan terms more favorable than your current mortgage, and you want to take advantage of the opportunity. Perhaps you want to use the equity in your home to pay for medical bills or college expenses. In each of these scenarios, you are talking about a new loan, for which you need an independent appraisal.