Selling property: This service is performed by your real estate agent/appraiser. The agent first compares your property with other properties in the same area that were sold in past one or two years and that are similar to your property in terms of features, size and condition. The agent then adds or subtracts the value to your property based on the features found in comparables.
Buying property: When planning to buy a home, a property appraisal is very important for getting the real and fair sense of what it actually is worth. In short, an appraisal of the property that you are willing to buy helps in verifying the amount you are agreeing to pay for the property is reasonable or not. Thus, appraisal is an essential condition in the purchase agreement which can either make or break the deal.
Refinancing: If your home does not have enough appraisal value, then the chances of refinancing could scuttle. It is important to prepare your home before refinancing it so that the collateral value offered by the property is justifying the refinanced loan amount you seek.
Tax reassessment: An appraisal is important for determining the property tax. If the value of your property has decreased, then you can get reappraisal for the same. This might lower your annual tax payment.
Thus with real estate appraisal, you will be able to assess the real value of your property and it is an important step in buying, selling or refinancing your property.