Massachusetts State licensed appraisers develop an opinion of value of real estate. While there are many definitions of value (e.g. — investment value, tax value, foreclosure value), the most common definition of value is market value. If the appraiser’s opinion is based on market value, then it must also be based on the highest and best use of the real property.

For mortgage valuations of improved residential property in the U.S., the appraisal is most often reported on a standardized form, such as the Uniform Residential Appraisal Report.[1] Appraisals of more complex property (e.g. — income producing, raw land) are usually reported in a narrative appraisal report.