A real estate appraisal is an opinion of value. This value depends on the anticipated utility and cash flows into the future of the property, and thus is time sensitive. There are economic, political, and environmental forces that are constantly changing and therefore affecting the real value of all property.
There are different approaches to appraising property and in practice, appraisers use all of the approaches and weigh them appropriately. One of the major tools appraisers use is comparing recent sales in the market. Unfortunately, there are always lulls in the marketplace that make using this tool difficult sometimes. Nowadays, many local listings are listed significantly less than the amount they sell for. This situation can result in a low appraisal value for any property compared to these properties.
http://www.sfgate.com/realestate/article/Accurate-appraisal-can-be-a-challenge-4062386.php
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