Explore commonly used personal finance terms.
An appraisal is a process in which a professional appraiser evaluates and determines the fair market value of an asset, such as real estate, art, or jewelry. This valuation is commonly required for buying, selling, or insuring high-value items. Appraisals are crucial in real estate transactions to ensure the property’s price aligns with its market worth. Appraisers use various factors, such as comparable market sales and the condition of the asset, to provide an accurate valuation that assists in financing, tax assessments, and insurance.
