When do I hire a real estate appraiser?

Real estate appraisers value the ownership interest in real property. The physical property might be a commercial, rural or residential tract or parcel.

This valuation discipline is called “real property appraisal.” That term includes the “real estate,” which includes the land and any improvements on the land, as well as the interests, benefits and rights inherent in the ownership of the land. This includes homes, land, commercial buildings and natural resources attached to or included in the ownership of the land (such as water, oil or minerals before the resource has been removed from the land).

At times, non-realty interests may also be included in an appraisal. Examples of this are restaurant equipment, machinery and equipment in an industrial plant and furniture in a hotel. When the non-realty items are significant, those items should be appraised by an accredited appraiser trained and experienced in the appraisal of that kind of property (see the “Machinery” page for more information).

Many people may only come in contact with a real property appraiser when they buy a house, though there are other instances when you may need to hire a real property appraiser. These include property disputes, the sale of a property in a divorce or an estate case, assessments for loans, assessments for partnership formations or dissolutions, for appeals of tax assessments, for eminent domain and easement situations and for disaster preparedness planning. You can also hire your own appraiser if you want to challenge an appraisal that a bank or mortgage company has made, decide on the adequacy of your homeowners or hazards insurance coverage, decide whether to buy, sell, lease, develop or remodel a property, or negotiate with a public agency that wants to take some of your property for a public use (such as for a right-of-way or to widen or build a road).