Valuing property accurately is very important to sellers, home purchasers, lenders, and real estate investors. Property valuation is the process which determines the economic value of real estate.
Property valuation typically seeks to determine fair market value, the price at which a knowledgeable seller willingly sells her property and a knowledgeable buyer will willingly purchase it. In other words, it assumes both parties have all the relevant information and neither is forced to buy or sell. Fair market value is not always equal to the sales price.
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