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Appraisal and Valuation
Appraisal and valuation are the terms that describe a professional assessment of a property or an item in your ownership and the assignment of a price that you may hope to receive for a sale, or to establish your credit worthiness to the bank where you applied for a loan. For legal purposes, only an assessment made by an expert recognized by the local authorities carries any weight.
For the most part appraisal and valuation are used in connection with property, jewelry, antiques and other precious items but this assessment can be applied to anything that is considered marketable. In addition to appraisals and valuations carried out by or on behalf of private individuals, you may also be subject to appraisal by the local authorities, for example, in connection with setting the property tax you need to pay.
Appraisal and valuation is based on a number of different criteria, one of the most popular being the value of similar items or property that has been put on the market recently. For example, if a four-bedroom house similar to your own has recently been sold for $200,000, it is likely that your own house is worth at least a similar sum. Another factor taken into consideration is depreciation.
The car you bought in 2002 has lost so much of its value over all the years you have used it, and so it is only worth a percentage of the value of a new model. The income a property generates is also taken into account by an appraiser, especially in connection with tax assessments. Technological development has also taken appraisal and valuation into a new sphere – the Internet. If you happen to own a particular domain its saleable value may be appraised and valuated by measuring how many hits the site takes, among other factors.
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Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
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