Whois & Analysis for compucram.com

Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value).

Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like a stock exchange is unrealistic).

Location also plays a key role in valuation.

However, since property cannot change location, it is often the upgrades or improvements to the home that can change its value.

Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on.

Sometimes an appraisal report is used to establish a sale price for a property.

A mortgage loan, also referred to as a mortgage, is used either by purchasers of real property to raise funds to buy real estate; or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

The loan is "secured" on the borrower's property.

This means that a legal mechanism is put in place which allows the lender to take possession and sell the secured property ("foreclosure" or "repossession") to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms.

The word mortgage is derived from a "Law French" term used by English lawyers in the Middle Ages meaning "death pledge", and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.