**Appraisal** (noun) — A professional evaluation conducted to determine the fair market value of property or assets, typically performed by a qualified expert.
An appraisal is when an expert examines property or assets and provides an official opinion of what they're worth. It's not just a guess—it's a detailed assessment based on market research, condition, comparable sales, and professional expertise.
Appraisals are crucial when you need a defensible, documented value for something. Your opinion that your grandmother's china is priceless doesn't hold up in court or with tax authorities. An appraiser's written report does.
Different assets require different types of appraisers. Real estate appraisers value property, art appraisers assess artwork, business valuation experts appraise companies. Using the right type of appraiser matters—a real estate appraiser isn't qualified to value your antique furniture collection.
⏱ When you'll encounter this term
In estate administration, appraisals serve multiple purposes. They establish values for estate tax returns, help executors divide property fairly among beneficiaries, and provide documentation if anyone challenges the estate distribution.
Executors typically need appraisals for real estate, businesses, valuable collections, jewelry, art, and antiques. Common household items usually don't require formal appraisals unless they're particularly valuable. The cost of the appraisal should be proportionate to the item's potential value.
You'll encounter appraisals when settling an estate, refinancing property, insuring valuables, or during divorce proceedings. Courts and tax authorities generally accept appraisals only from qualified, independent professionals. Family member estimates, online valuations, or interested party assessments usually aren't acceptable.
**Related terms:** [Fair Market Value](/dictionary/fair-market-value), [Assets](/dictionary/assets), [Estate Tax](/dictionary/estate-tax)
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"The executor arranged an appraisal of Dad's house and business to determine the estate's total value for probate."