An appraisal is used to determine a properties current value.
It is really a combinations of tactics that if used in tandem can make sure you are not paying over market value for a property.
Never buy a house with out knowing its value.
The first technique is known as finding comparables.
This is when you look at what other houses recently sold for in the area and compare them to the property in question.
This is one of the best ways to start determining if your getting a fair deal.
Start by checking on line there are many different websites to help you on your journey.
I always take a glimpse at zillow.
Though not a 100% accurate it still allows you to get an idea of the area and surrounding properties.
Go to the neighborhood and walk around, spend a day to see what life is like in the community.
Make sure to go to a couple open houses in the area to see exactly what you like.
This is the absolute best way to decide if this is the right community for you.
Many people are trapped in their house's today because they borrowed more than the value of their home.
Savvy investors know that you make your money in real estate when you buy not when you sell.
If you have the biggest house in the neighborhood your house's value will be limited by that of your neighbors.
In other words if you have the smallest house in a neighborhood your value will be kept high because of your neighbors.