Appraisal

An appraisal is a formal assessment, typically conducted by a qualified expert, to determine the value, quality, or performance of something. This process involves evaluating various factors relevant to the subject, such as condition, features, market trends, and relevant data. Appraisals can be applied to a broad range of subjects, including real estate, art, business, personal property and employee performance. The outcome of an appraisal is a documented, objective valuation used for decision-making and a legal basis in various transactions and situations.

Appraisal meaning with examples

• The homeowner hired a professional appraiser to get an independent assessment of the market value of their house before putting it up for sale. The appraisal documented its features and condition, providing potential buyers with a reliable valuation to help with mortgage qualifications.
• After a successful year, each employee's performance was evaluated in a detailed performance appraisal. This involved feedback from supervisors and self-assessments to determine areas of strength, improvement needs, and overall contribution to the company goals.
• The art collector commissioned an appraisal for a painting from a renowned expert to determine its authenticity and fair market value, enabling informed choices when insuring the artwork.
• The business owner requested a business appraisal to estimate the worth of the company. The business was being sold, the appraisal would help to negotiate the final purchase price for each party to come to a fair agreement.
• A car buyer had a mechanic provide a vehicle appraisal, including a mechanical inspection and market valuation, providing leverage for negotiating a fair price with the seller to ensure it was worth the asking price.