The person who performs a real estate appraisal exercise is called the real estate appraiser or property valuation surveyor. The value as determined by real estate appraisal is the fair market value.
The real estate appraisal is done using various methods and the real estate appraisal values the property as different for difference purposes e.g. the real estate appraisal might assign 2 different values to the same property (Improved value and vacant value) and again the same/similar property might be assigned different values in a residential zone and a commercial zone.
However, the value assigned as a result of real estate appraisal might not be the value that you, as a real estate investor, would consider when evaluating the property for investment. In fact, you might completely ignore the value that comes out of real estate appraisal process and use your own research from InvestorCompsOnline to determine your purchase price and resale value.
A good real estate investor would evaluate the property on the basis of the developments going on in the region. So you would come up with the value that an investor can get out of the property by buying it at a low price and selling it at a higher price.
You as a real estate investor will generally base your investment decision on the real estate comps you find in InvestorCompsOnline. So, knowing all this, can we then term real estate appraisal as a really real ‘real estate appraisal’?