Appraisal can be defined as an estimate of an asset’s market value. The estimated amount is derived by an expert who prepares a report providing the reasoning behind the estimated value. Appraisals are usually conducted of antique items, land, buildings and businesses. An appraisal can be carried out for a number of reasons such as deriving value for sale of an asset, for insurance purposes or to determine division of a particular asset such as land/ building either for divorce or inheritance.
A report prepared by a professional with detail information concerning the asset’s current value. The said report can also be prepared for estimating the cost to repair an asset. An appraisal report also states the reasoning behind the derived estimated amount of a particular asset.