An appraisal is an unbiased, supportable estimate of the defined value of a property performed by a professional appraiser.
Supportable Estimate
A supportable estimate is one that has been arrived at through
inspections, documentation and photographing, research of pertinent sources, and which states a valuation conclusion as of a specific date.
Property
For the purpose of an appraisal, there are two types of property -- real estate and everything else, including gems & jewelry, machinery & technical, personal property, and intellectual and intangible property.
Value Approaches
Appraisers use any of three approaches in their valuation. The Cost Approach: What is the cost of fabrication in materials? What would it cost to reproduce? The Income Approach: What would a prudent investor pay for the property based on the income it produces? And the Sales Comparison Approach: What have similar properties (homes, farms, machinery, jewelry, art) sold for recently?
Professional Appraiser
A professional appraiser is an expert in the valuation process, qualified by background, experience and education. ASA-accredited appraisers perform appraisals in compliance with The Uniform Standards of Professional Appraisal Practice, (USPAP) and the code of ethics of the Society.