Appraisal

An appraisal is a professional, unbiased estimate of the fair market value of a property. In the United States, appraisals are typically conducted by state-licensed or certified appraisers who follow the Uniform Standards of Professional Appraisal Practice (USPAP).

When purchasing real estate in NYC, most lenders require an appraisal before approving a mortgage loan. The appraiser evaluates the property's condition, location, size, and comparable recent sales in the area to determine its value. If the appraisal comes in lower than the agreed purchase price, buyers may need to renegotiate or cover the difference with additional funds.

For international buyers, understanding the appraisal process is essential. Foreign nationals purchasing property may face stricter appraisal requirements from lenders. Cash buyers can sometimes waive the appraisal contingency, but having an independent appraisal remains advisable to ensure the investment is sound.