Definition - What does Appraisal mean?
An appraisal, valuation or appraisement is an inspection and consequently a monetary figure provided by a professional appraiser or court-appointed surveyor regarding the worth of a piece of property.
Appraisals can be given for artwork, real estate, jewelry, etc. In the context of the law, appraisals can be used for taxation purposes, insurance claims or other situations where valuations of property need to be made for legal proceedings, such as estate sales.
Justipedia explains Appraisal
The main reason for an appraisal is to find out the real value of the property so as to be fair to the parties involved. Appraisals become more important when there is more than one person claiming the property or proceeds from its sale.
Appraisals made by professional appraisers are useful for the market because a seller may be biased and appraise a property higher than its true value, whereas a buyer may be biased and appraise a property lower than its true value. So, appraisers fill the need for an objective, third-party valuation.