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appraisal

uh-PREY-zuhl /əˈpreɪzəl/

nounB2GMATIELTSTOEFL

financialprofessionaleveryday

An official, expert evaluation of the physical condition, damage, or monetary value of a property, home, or vehicle.

An appraisal is conducted by an independent professional (an appraiser) to establish an objective value, preventing disputes between the policyholder and the insurance company.

The story behind the word. The Latin root 'pretium' means price (the same root that gave us 'precious' and 'prize'). To 'appraise' something is to physically go to it and attach a fair price or value to it based on its condition and market demand.

Word relationships

valuation: Valuation is the general estimation of worth, while an appraisal is a formal, legally recognized report written by a certified expert.
estimation: An estimation is a rough calculation, whereas an appraisal is a precise, detailed evaluation based on standardized criteria.

Commonly confused with

claim: A claim is the request for compensation; an appraisal is the evaluation used to determine how much that compensation should be.

Word family

appraise (verb): To estimate the value or quality of.
appraiser (noun): A certified professional who conducts appraisals.

Collocations

independent appraisal
property appraisal
order an appraisal
appraisal value

Example sentences

"The insurance company ordered an independent appraisal of the antique vase before agreeing to insure it." Valuing Property

Memory hook

An 'appraisal' is when a professional helps 'praise' the 'price' of your property. Appraisal sets the price.

When not to use

Do not confuse with 'assessment', which is often used by governments for tax purposes, or 'approval', which is a statement of agreement.

Fun facts

The popular television show 'Antiques Roadshow' is essentially a series of dramatic, real-time appraisals of family heirlooms.