Appraisal Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Appraisal, written in plain English, along with examples of how it is used.
What is Appraisal?
“Determined by a professional appraiser, the estimated value of a property.
History and Meaning of Appraisal
An appraisal is the estimated value of a property or item, determined by a professional appraiser. The practice of appraising dates back to ancient times, when people would seek out expert opinions on the value of goods they wished to trade. Nowadays, appraisals are most commonly used in real estate transactions, but they can also be used for art, antiques, jewelry, and other valuable items. Appraisers use a variety of methods to determine the value of a property or item, including market analysis, functional and external obsolescence, and the cost approach.
Examples of Appraisal
- "Before we can determine the asking price for your home, we need to schedule an appraisal to get an accurate estimate of its current value."
- "The insurance company required an appraisal of the diamond ring before they would offer coverage."
- "The probate court ordered an appraisal of the deceased's estate to ensure that the assets were divided fairly among the heirs."
- "The bank required an appraisal of the commercial property before approving the loan."
- "The museum hired an appraiser to determine the value of the artwork before deciding whether to acquire it for their collection."
Legal Terms Similar to Appraisal
- Valuation: The process of determining the value of a property or item.
- Assessment: A valuation performed by a government entity for tax purposes.
- Evaluation: An analysis of an organization or program to determine its effectiveness or value.