An appraisal in real estate is the process of determining the fair market value of a property, conducted by a certified appraiser. It provides an unbiased estimate based on factors such as the property’s location, size, condition, and comparable market trends.
Relevance in Real Estate
- Ensures Fair Pricing: Appraisals help buyers and sellers establish a property’s true market value, preventing overpricing or underpricing.
- Required for Financing: Banks and financial institutions rely on appraisals when approving mortgages to ensure the loan amount aligns with the property’s worth.
- Decision-Making Tool: Investors and developers use appraisals to evaluate the potential profitability of a property.
In Kenya, property appraisals are crucial for buyers of luxury apartments, like those offered by Barre-Homes, to ensure they are making informed financial decisions. Developers also conduct appraisals to price their properties competitively while reflecting the luxury and affordability balance.