Appraisal
uh-PRAY-zuhl
/əˈpreɪzəl/
An act of assessing something or someone; a formal assessment of the value of property.
In real estate, an appraisal is a professional, unbiased estimate of a property's market value, often required by lenders to ensure the property's value supports the loan amount.
The story behind the word. The word 'appraisal' comes from the Old French 'apraiser', which meant 'to set a price on'. This, in turn, derived from the Latin 'ad' (to) and 'pretium' (price, value). So, when an appraiser comes to your home, they are quite literally 'putting a price' or 'assigning a value' to it. It's all about determining that 'pretium'!
Word relationships
- Valuation: Often interchangeable, but 'appraisal' specifically implies a formal, expert assessment, especially in real estate.
- Assessment: Broader term; can refer to any evaluation, not just monetary value.
Commonly confused with
- Estimate: An 'estimate' is a rough calculation; an 'appraisal' is a formal, professional, and often legally binding determination of value.
Word family
- appraise (verb): To assess the value or quality of something.
- appraiser (noun): A person who assesses the value of something, especially property.
Collocations
- property appraisal
- home appraisal
- conduct an appraisal
- get an appraisal
- fair market appraisal
Example sentences
- "Before approving the loan, the bank required a professional appraisal of the house to confirm its market value." An appraisal is crucial for securing a mortgage.
- "Due to the booming market, the latest appraisal showed a significant increase in the property's worth." Property values can fluctuate.
Memory hook
An APPRAISAL helps you know the APPROPRIATE PRICE of your property. Appropriate Price
When not to use
While 'appraisal' can refer to evaluating performance, in real estate, it specifically means valuing property. Don't use it for a casual estimate.
Fun facts
- Real estate appraisers must be licensed and follow strict ethical and professional standards to ensure unbiased valuations.
Related words
Explore more words
interview, valuation, Appreciation, evaluation, approbation, applause
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