An appraisal is an inspection of a real estate property by authorized personnel for the purpose of determining the fair market value of the property. Appraisals are an interesting activity for contrary to popular opinion, every party involved will be looking to maximize the appraisal value as much as you can. Even though the buyer will be shelling out to acquire the property, even he is looking to maximize the value for appraisal values have little impact on the purchasing price and have every bearing on financing options. The appraisal value will determine the amount of credit a bank will make available to the buyer for financing the purchase, which is why both the buyer and the seller are eager to achieve the highest possible appraisal value. The actual purchase value could be higher or lower than the appraisal figure but is generally lower for the financing the deal could become almost impossible if a higher price is agreed upon.