Appraisals are used for many purposes. Some common uses of appraisals are:

Mortgage Lending

Most mortgage transactions involve an appraisal. Generally, financial institutions will only approve a mortgage after contracting for an independent appraisal to document the value of the property which serves as collateral for the loan.

Donations and Insurance

Art donated to a museum is often appraised to establish the appropriate tax deduction for the donor. Also, furniture and fixtures, gems, fine art and other valuables are often appraised to identify appropriate insurance coverage.

Investments

Pension and investment fund managers, corporations and other investors generally require professional appraisal services prior to acquiring investment real estate, art or other property.

Property Tax

Ad Val Orem appraisals or assessments are conducted by many jurisdictions to establish real estate taxes.