Posted in Finance, Accounting and Economics Terms, Total Reads: 291
A professional who has the knowledge, skills and expertise important to estimate the value of an asset or more specifically a property, or the probability of an event occurring, and the cost of such an occurrence. In an ideal scenario, an appraiser would act independent of the buying and selling sides in a transaction so that it arrives at a fair value of the asset without any bias.
Let us first understand what an appraisal really is? An appraisal is a valuation of a property (mostly real estate) given by a professional appraiser for example those designated by ASA (American Society of Appraisers). A professional appraiser will make an in-depth report for his or her clients which provides his or her point of view regarding the value at a given point in time for any kind of property whether it is a business, a pearl, an electricity-generating dam, a painting/statue, a house or anything else.
In order to prepare an appraisal one needs to have research, in-depth analysis of all necessary information and proper experience, skill, keen senses, knowledge and judgment to make a reasonable and believable opinion of value.
Appraisers are moreover, very useful when trying to attach a value to products such as jewellery, art, gems, and most importantly real estate. Since these assets lack liquidity and there is a necessity to believe in comparisons to come up with their value, investors like to place very high importance to an appraiser's work and insights.