Posted in Finance, Accounting and Economics Terms, Total Reads: 749
Definition: Appraisal Approach
Appraisal approach is about evaluating the price of an asset, which it would fetch in a free market. Appraisal Approaches are the procedures followed to estimate the market value of tangible or intangible assets. The approach is generally carried out to measure the worth of valuable assets like jewelry, vehicles and real estate. Estimation of value of such assets is necessary for their sale or insurance purposes. The appraised value is not always equal to the asset’s market value. The buyers have to pay for what the asset is worth to them.