Appraisal is the legal process of determining the value of a property or asset. It is done by an independent, qualified individual known as an appraiser. Appraisers look at the size and condition of a property, as well as any improvements or additions that have been made. They also consider any market-based factors that could influence the value of the property. This process helps them come up with an accurate estimate or appraisal of the property’s worth.
Modern Examples of Appraisal
In recent times, appraisal has become a common occurrence in a variety of different scenarios. For instance, banks and mortgage lenders may require an appraisal before offering a loan or refinancing to a potential borrower. Similarly, appraisal may be requested by insurance companies to ascertain the value of an asset or an individual’s home for insurance policy purposes.
Appraisals are also commonly used in court proceedings. In contested divorce settlements, appraisers are often brought in to determine the fair market value of jointly-owned assets. Businesses too may use appraisers to determine the value of a company’s property or equipment. In some cases, it may also be used to determine the value of a deceased’s estate
Conclusion
In conclusion, appraisal is an important process that helps determine the fair market value of an asset or property. Appraisal is most commonly used by banks, mortgage lenders, insurers and courts. It is also often used by businesses to accurately determine the value of a company’s property or equipment.