DEFINITION of 'Appraisal'

A valuation of property (ie. real estate, a business, an antique) by the estimate of an authorized person. In order to be a valid appraisal, the authorized person will have a designation from a regulatory body governing the jurisdiction the appraiser operates within.


Appraisals are typically used either for taxation purposes or to determine a possible selling price for the property in question. The appraiser can use any number of valuation methods in order to determine the appropriate value to assign, including the current market value of similar properties, quality of property and valuation models.

  1. Scheduled Personal Property

    Additional coverage that's over and above the typical coverage ...
  2. Appraisal Approach

    A procedure for determining an asset's value. The appraisal approach ...
  3. Appraisal Method Of Depreciation

    A form of depreciation calculation that is based upon appraisal ...
  4. Qualified Appraisal

    An appraisal document that is created, signed and dated by a ...
  5. Appraisal Right

    The statutory right of a corporation's minority shareholders ...
  6. Appraiser

    A practitioner who has the knowledge and expertise necessary ...
Related Articles
  1. Insurance

    10 Hurdles To Closing On A New Home

    It's the biggest purchase of your life - find out what can go wrong before you even close the deal.
  2. Taxes

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.
  3. Home & Auto

    10 Tips For Getting A Fair Price On A Home

    Don't let buying a home bust your budget. Make sure the house you choose is worth the price you pay.
  4. Options & Futures

    Introduction To Gemology

    Gemology as an investment alternative may seem glamorous, but it's not for the faint of heart.
  5. Home & Auto

    Applying For An FHA 203(k) Loan

    If you have the time and energy, the 203(k) loan is often the only way to finance a property needing significant repairs.
  6. Retirement

    Non-Cash Contribution Rules Could Cut Returns

    Higher standards for certain contributions could mean smaller deductions for you.
  7. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  8. Personal Finance

    What to Collect: Apple Watch vs. Luxury Watches

    The "iWatch" is a new player in the luxury watch world. But will it stand the test of time? Some points for collectors to ponder.
  9. Personal Finance

    Buying Fur: Which Variety Is Worth the Most?

    Fur is once again hot among the haute couture set. A guide to getting the best skin for your style (and money).
  10. Insurance

    Designer Clothes: Why You Need Special Insurance

    You spend a lot of money on couture creations. Shouldn't they be protected from damage?
  1. Why should investors care about Net Operating Income (NOI)?

    Net operating income, or NOI, is a metric designed for commercial real estate investors. Every property analysis performed ... Read Full Answer >>
  2. What is the underwriter's job in a real estate transaction?

    In a real estate transaction, the underwriter conducts research to ensure that the individual borrowing funds for the real ... Read Full Answer >>
  3. Who are the best-rated home insurance companies in the US?

    Based on consumer surveys, the best company for homeowners insurance in 2014 is Amica Mutual. Present and past insurance ... Read Full Answer >>
  4. How can I tell when a real estate agent might be lying to me?

    Real estate agents are likely to lie or fudge the details about their own credentials, the value and condition of a property ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  2. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  3. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  4. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  5. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  6. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!