There is a difference between "appraisals" and "assessments" although the words are commonly used interchangeably. A educated consumer knows the differences:
Assessments
- Completed using an automated valuation program.
- Generally done once per year.
- Used to determine real estate taxes.
- Should be within a margin of error of +/- 10%.
Appraisals
- Done by licensed appraiser who looks at the home, and comps.
- Values property "real time" (as of the date of the report).
- Used to support sales prices or loan amounts.
- Should be as close to Fair Market Value as possible.
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