Appraisal

An appraisal is a professional evaluation of the current market value of real, personal or intangible property. A qualified appraiser typically performs an appraisal. An appraisal is usually required when property is sold, insured or financed. The most common usage of the term appraisal is that associated with a real estate appraisal. A real estate appraisal provides written justification for the price of a piece of land, a house or a commercial building. The real estate appraisal is primarily based on an analysis of comparable sales of nearby properties. An appraisal can help a potential buyer determine what price to offer, while assisting the lender with mortgage requirements. Other items that frequently go through the appraisal process include jewelry, fine art, antiques, aircraft, businesses and certain equipment. An appraisal is also used for tax purposes. There are two primary types of appraisal: fee appraisal (appraisal by a contracted appraiser who is paid a fee) and a mass appraisal (appraisal of many properties using a statistical approach conducted by a government agency).