APPRAISAL VALUE Meaning and
Definition
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Appraisal value is a term commonly used in the field of real estate and finance to refer to the estimated worth or fair market value of a property or asset. It is the evaluated monetary value assigned to a property based on a professional appraisal conducted by a qualified and licensed appraiser.
The appraisal value is determined by considering various factors such as the property's location, size, condition, any improvements or renovations made, comparable sales in the area, and other market conditions. The purpose of determining the appraisal value is to provide an unbiased and objective assessment of the property's market worth.
Appraisal value plays a crucial role in numerous real estate transactions, including buying, selling, refinancing, mortgage loan applications, and property tax assessments. Lenders often require an appraisal to ensure the property's value is sufficient collateral for the loan.
The appraisal value is a crucial resource for buyers and sellers as it helps them make informed decisions about pricing, negotiations, and investments. It provides an unbiased opinion from a professional who has expertise in property valuation.
It is important to note that the appraisal value may differ from the listing price or the perceived value by the buyer or seller. Additionally, appraisal value estimates are not static and can change over time due to fluctuations in the real estate market or alterations to the property itself.
Etymology of APPRAISAL VALUE
The word "appraisal" originated from the Old French term "apreisier", which means "to set a price or value". It derived from the Latin term "ad-" meaning "to" and "pretiare" meaning "to value or appraise". "Value", on the other hand, comes from the Old French term "value" or "valour", which ultimately stems from the Latin word "valere", meaning "to be strong, to be worth". The combined term "appraisal value" refers to the monetary or estimated worth or evaluation of something.
