An appraisal is defined as a valuation of a real estate, a business or any other asset by an authorized person. An appraisal is embarked upon by the authorized appraiser, who is designated for such objective by a regulatory body, tasked with administering such appraisals within the jurisdiction of the appraiser. Home appraisals are necessary during the process of buying or selling a real estate. The appraisal is undertaken during a mortgage agreement to ascertain if the value of the home is above, below or at par with the quoted purchase price, using criteria such as location, physical condition, age of the real estate, as well as the size. If during the appraisal, the mortgage lenders find out that the price is below the quoted price, they are likely to decline in funding the mortgage. However, if the borrower can come up with the difference between the quoted purchase price and the evaluated price arrived at from the appraisal, the lender may decide to proceed with the funding. Appraisals are undertaken using a variety of valuation methods to determine the appropriate value of the home. This may include comparing the current market value of similar properties.