An appraisal is an estimate of the value of an item of property which is based on strict criteria. Appraisals are usually created by appraisers - experts with a thorough understanding of a specific market.

An appraisal of a piece of real estate may be required for mortgage applications because it provides a realistic estimate of a property’s collateral value.

Insurance providers which provide household insurance or valauables insurance may require appraisals of personal property in order to determine the true value of the items to be insured.

More on this topic:
Comprehensive Mortgage Comparison
Household insurance comparison
Valuables Insurance Explained

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at
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