Appraisals Definition
An appraisal is defined as a professional opinion of value. appraisals are most commonly used in the context of real estate, art, and antique furniture. However, an appraisal can be done on any type of property, including businesses, personal property, and intangible assets such as patents and copyrights.
The purpose of an appraisal is to estimate the property’s fair market value at a given point in time. This estimated value is used for a variety of purposes, such as setting a selling price, negotiating loans, settling estates, and establishing tax assessments.
There are many different types of appraisals, but they all follow the same basic process:
1. The appraiser gathers information about the property being appraised. This includes things like its age, condition, size, location, and any recent sales data for similar properties.
2. The appraiser inspects the property in person to get a better understanding of its features and condition.
3. The appraiser researches comparable sales data to help determine the property’s fair market value.
4. The appraiser creates a report detailing their findings and estimating the property’s fair market value.
5. The client review the report and decides whether or not to proceed with the sale or loan based on the appraisal value.
