If you are a homebuyer and have already placed a bid on purchase a home, you will need to have an appraisal.  An appraisal is an opinion of value reached by an appraiser based upon recent sales information for similar properties, the condition of the property and the neighborhood’s impact on future property value. The cost of the appraisal is usually part of closing costs, however sometimes the appraisal may need to be paid for upfront.  Part of the appraisal is to make a report made by a qualified person setting forth an opinion or estimate of value.