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One of the most important purchases many American's will make is the purchase of a home or real property.  For buyers, an appraisal ensures that a current, fair market value is being paid.  For sellers, the same can be true when determining a competitive asking price.  For lenders, an appraisal provides additional support that a property is valued accurately for collateral security.  An appraisal can also be very important for estate or family planning, determining tax basis or other related uses.  

An appraisal engagement involves determining who the intended user of the appraisal will be and what the intended use of the appraisal is.  The appraiser will likely ask you why the appraisal is needed and who it is needed for.  This will help to determine the scope of the appraisal and type of value that is needed.  An appraisal is only valid for the intended use and user specified in the appraisal report.  

A market analysis can typically be completed by an unlicensed and/or uncertified individual.  The market analysis will typically review comparable properties on a much broader scale, not taking in to consideration all details and characteristics specific to your property.  An appraisal is typically a more detailed report that determines the current market value of a specific property.  An appraisal is also completed by a licensed or certified, professional appraiser.  

Appraisal fees are typically determined based on the complexity of an appraisal assignment, and never based on the value of the property.  Fees should also never charged based on a percentage of the value.  Appraisal fees are established by each firm individually based on a variety of factors, including experience, area knowledge, etc.  The cheapest appraisal may not always be the best option!