What is an appraisal on a house?

An appraisal is a written document showing an opinion of how much a house is worth. A state-licensed or certified appraiser, acting as a neutral third party, inspects the property, compares it with recent sales of similar homes, and prepares a report. The lender uses that report to help decide whether to approve the loan, the interest rate, and the required down payment.

A home appraisal is an estimate of a property's real estate value, usually prepared for a fee by a licensed or certified real estate appraiser. Federal law requires a state license or certification when the appraisal supports a federally related transaction, such as a loan made by a federally insured bank or financial institution. In Connecticut, no one may act as a real estate appraiser without a certification or provisional license issued by the state.