Appraisal Approach

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Dictionary Says

Definition of 'Appraisal Approach'

A procedure for determining an asset’s value. The appraisal approach values assets based on a number of factors, such as its cost, the income it generates or its fair market value as compared to similar assets. A different dollar value will be assigned to an asset depending on which of these factors the appraiser primarily bases his or her estimate on. Sometimes the appraised value will not coincide with an asset’s market value and buyers will often pay more or less than an asset’s appraised value based on what the asset is worth to them. No matter which appraisal approach is used, an appraisal is only an educated guess as to what price the asset would fetch in a free market.
Investopedia Says

Investopedia explains 'Appraisal Approach'

Appraisals are used to determine the worth of high-value assets such as real estate, jewelry, businesses and vehicles. They are usually performed in conjunction with a sale or for insurance purposes. For the results to be taken seriously, an appraisal must be conducted by an individual with expert knowledge of the asset being assessed. A diamond ring should be appraised by a jeweler, and a business should be appraised by a valuation firm.

Search results for

'Appraisal Approach'

  • Exploring Real Estate Investments: Finding Investment Value ...

    http://www.investopedia.com/university/real_estate/real_estate6.asp
    ... the property is $1,000,000. Another often-used appraisal method is the
    discounted cash flow approach. This approach is somewhat ...

  • Rental Properties: Cash Cow Or Money Pit?

    http://www.investopedia.com/articles/mortgage-real-estate/09/property-valuation-basics.asp
    ... However, an investor's valuation may differ from an appraisal for several reasons. ...
    a comparison of recent and comparable transactions and an income approach. ...

  • CFA Level 1 Study Guide - Alternative Investments - Real Estate ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/real-estate-calculations.asp
    ... 14.36 Cash Flow; 14.37 Bond Value and Price; 14.38 Arbitrage-free Valuation
    Approach; 14.39 Typical Yield Measures; 14.40 Assumptions ...

  • Flipping Houses: Is It Better Than Buy and Hold?

    http://www.investopedia.com/articles/mortgages-real-estate/08/flipping-flip-properties.asp
    ... Residential real estate is valued by the appraisal method and not by continual trading ...
    major types of properties that can be used in a buy/sell approach to real ...

  • What Is The World Bank?

    http://www.investopedia.com/articles/03/042303.asp
    ... also been focusing on reducing the risk of projects by means of better appraisal
    and supervision mechanisms as well as a multidimensional approach to overall ...

  • Top 4 Signs Of Over-Diversification

    http://www.investopedia.com/articles/financial-theory/11/signs-of-over-diversification.asp
    ... traded real estate, are based on estimates and appraisal values instead of daily
    public market transactions. This “mark-to-model” approach to valuation can ...

  • Why You Should Wait To Buy A House - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Why-You-Should-Wait-To-Buy-A-House.aspx
    ... a house in this economic environment, the best approach is to ... canceled sales contracts
    resulting from unqualified mortgage applications, appraisal values below ...

  • It Is Better To Give AND Receive

    http://www.investopedia.com/articles/pf/07/give_and_receive.asp
    ... So consider replacing a hit-and-miss donation approach with charitable-giving ... of
    condition, can be claimed if you include a professional appraisal with your ...

  • Unearth Profits In Oil Exploration And Production

    http://www.investopedia.com/articles/stocks/07/oil-gas.asp
    ... The approach is similar to building a diversified portfolio of stocks. ... the most
    confidence calculating because the field has been proved by appraisal wells or ...

  • Layoff Protection Plans: Good Deal Or Gimmick?

    http://www.investopedia.com/articles/pf/09/layoff-protection-plans.asp
    ... balance, the customer returns the vehicle to the selling dealer, whose appraisal
    is factored ... a consumer shopping for a car may be able to approach an automaker ...

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