An appraiser, or real estate appraiser, is trained and qualified in providing an estimate of the worth of a property such as a home or business. An appraiser has an extensive knowledge of the market and performs a thorough analysis in order to create an accurate appraisal of a property's value. A qualified real estate appraiser will always present the appraisal in a written report that is clear in its meaning.

The contents of an appraisal report include the estimated value of the property, the date, the purpose of the appraisal and the signature of the appraiser. The appraisal must also identify the address of the property and maps or photographs may also accompany the report.

An appraiser can estimate property value in one or more different ways. In a Direct Comparison, the appraiser researches what a buyer would get for a similar property. The appraiser compares real property listings and actual selling prices.

In a cost approach, the appraiser calculates what the cost of building a new structure like the appraised one would be under current market conditions. The appraiser takes land value estimation into consideration. Accumulated depreciation is also taken into the appraiser's analysis.

The Income method of appraisal considers the maximum amount of income a business or other property could produce. The appraiser calculates the operating income to help arrive at the value estimation. Emphasis is placed on what the income could be if the property was managed to its maximum potential.

Purposes for hiring an appraiser vary widely. An appraisal could be required for insurance reasons or as part of a divorce agreement as part of the division of assets. An appraisal may also be needed when a donation to a charity is deemed tax deductible. Estate or gift tax and liquidation are other situations that may call for an appraiser.

The type of value required by the appraiser is often different for each different appraisal purpose. For example, the appraiser may calculate fair market value in some situations and may apply liquidation value in others. Each American state has different requirements for the licensing of real estate appraisers, so it is best to contact your individual state appraisal board or office for specific information about appraisers.