Explanations

An appraisal is an estimate or opinion of the value of a piece of property as of a specific date. The appraiser must define the problem, which includes identifying the specific date for which the value is being estimated. For instance, when valuing a property for a loan, the appraisal date is typically the current date. However, for legal disputes, an appraiser might be asked to estimate the value as of a past date. The market value, which appraisers often aim to define, is the most probable price a property should bring in a competitive market under fair sale conditions. This value is a snapshot in time; there is no specified period of validity (e.g., three, six months, or one year) for an appraisal report’s estimate of value. Changes in economic conditions, demand, or other factors can quickly alter a property’s value, making the appraisal accurate only for its stated effective date.

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