The process of determining the current market value of the property.
An appraisal is conducted by a licensed professional who evaluates the property's condition, location, size, features, and recent comparable sales in the area. Lenders require appraisals before issuing a mortgage to confirm the property is worth the purchase price. For luxury and vacation properties, appraisals also account for unique amenities, views, and access to recreational areas that drive premium pricing.
GoForth, a luxury co-ownership company, commissions independent appraisals on every property before acquisition to ensure fair pricing for all four co-owning families. Appraisals also play a role when an owner decides to exit — GoForth's exit guarantee is backed by current market valuations, so sellers receive a price that reflects real appreciation rather than an arbitrary estimate.