Lenders require an appraisal to ensure that the loan amount doesn’t exceed the property’s market value. This protects them from lending more money than the property is worth.

Appraisals provide an objective valuation, helping buyers avoid overpaying and sellers set realistic prices.

Appraisal data contributes to market analysis, affecting future pricing and investment strategies in the real estate market.

The appraiser conducts a thorough inspection of the property, noting its size, condition, layout, and any unique features or upgrades.

The appraiser compares the property with similar properties in the area that have recently sold, known as "comparables" or "comps."

The appraiser considers current market conditions, including supply and demand, economic factors, and regional trends, to refine the property’s value.

The appraiser compiles all findings into a detailed report, including the property’s final appraised value, which is then submitted to the lender or client.

This is the most common method, comparing the property with similar recently sold properties.

Used primarily for new or unique properties, this approach calculates the cost to rebuild the property from scratch, subtracting any depreciation.

Commonly used for income-producing properties, this method evaluates the property based on its potential to generate income.

Be familiar with terms like “market value,” “comparables,” and “depreciation.”

Focus on the differences between the sales comparison, cost, and income approaches.

Use examples to apply appraisal concepts to real-life situations, which can help solidify your understanding.

We offer detailed modules that break down the appraisal process, methods, and market factors.

Our practice exams include numerous appraisal questions to help you test your knowledge and build confidence.

Our instructor, Kristen Bacorn, New York's #1 Real Estate Instructor, brings real-world experience to the classroom, making complex topics like appraisal easier to grasp.