Which term denotes a professional opinion, usually written, of the market value of a property such as a home, business, or other asset?

Which term denotes a professional opinion, usually written, of the market value of a property such as a home, business, or other asset?

• A. Appraisal
• B. Assessment
• C. Valuation
• D. Estimate

Answer: (A)

A professional appraisal is a formal, written opinion of the market value of a property, produced by a licensed appraiser who uses established methods and documents their data, assumptions, and conclusions. This makes it the standard reference used in real estate transactions, lending, and insurance when determining what a property is worth in the open market. An assessment is typically used for tax purposes and may not reflect current market conditions or follow the same valuation standards. A valuation is a broader term for estimating value and can refer to various methods or purposes, not always tied to a formal written report by a licensed professional. An estimate is a rough calculation or guess, lacking the detailed methodology and verification that an appraisal provides.

A professional appraisal is a formal, written opinion of the market value of a property, produced by a licensed appraiser who uses established methods and documents their data, assumptions, and conclusions. This makes it the standard reference used in real estate transactions, lending, and insurance when determining what a property is worth in the open market.

An assessment is typically used for tax purposes and may not reflect current market conditions or follow the same valuation standards. A valuation is a broader term for estimating value and can refer to various methods or purposes, not always tied to a formal written report by a licensed professional. An estimate is a rough calculation or guess, lacking the detailed methodology and verification that an appraisal provides.