Valuation Vs Appraisal
Q: What is the difference between a property appraisal and a property valuation?
A: As an investor it is important to know that there is a legal difference with both terms.
Put simply, an appraisal is often considered an informal, educated sale price/list figure or range provided by an agent using local knowledge of the area and recent comparable sales. There is generally no cost associated with an appraisal and it is often not legally binding.
A valuation however, involves a formal systematic process to determine the actual value of a property from an independent and impartial point of view by a qualified valuer. The valuer has no invested interest in the property, which can provide greater security as it is also legally enforceable should there be any financial loss ramifications. A written report will be produced, and a fee charged.
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