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Simple English definitions for legal terms
appraisal
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A quick definition of appraisal:
An appraisal is when someone who knows a lot about something looks at it and figures out how much it's worth. This is important when people want to buy or sell a house or other property, or when they need to get insurance for something valuable. The person doing the appraisal, called an appraiser, looks at the thing and also looks at other information, like how much similar things have sold for in the past.
A more thorough explanation:
An appraisal is a process that determines the value of an item or property. It is necessary in various situations, such as buying or selling a home, refinancing, or making an insurance claim. An expert called an appraiser inspects the object and considers relevant data to determine its value.
- When buying a house, the lender will require an appraisal to ensure that the property is worth the amount of the loan.
- If a homeowner wants to refinance their mortgage, an appraisal will be necessary to determine the current value of the property.
- If a person wants to insure their valuable artwork, an appraisal will be required to determine its worth and set the insurance coverage.
These examples illustrate how appraisals are necessary in various situations to determine the value of an item or property. Without an appraisal, it would be difficult to determine a fair price for buying or selling, or to set appropriate insurance coverage.