Professional Appraisals: Understanding the Purpose, Process, and Benefits

When is an appraisal needed and how can it be requested?

If an insured and an insurer disagree about the value of a property loss, either party can make a written demand for an appraisal.

An appraisal is needed when a professional assessment or valuation of tangible or intangible assets, such as a piece of real estate or a business entity, is required. The purpose of an appraisal is to determine the fair market value of the asset being appraised, which is the price that a willing buyer would pay a willing seller for the same asset under normal market conditions.

Appraisals are typically required for a variety of reasons, such as:

1. Buying or selling a property or a business
2. Obtaining financing or refinancing a property
3. Estate planning or settlement
4. Tax assessment or dispute
5. Divorce settlement

An appraisal can be requested by contacting a qualified appraiser who has experience in valuing the type of property or asset in question. Appraisers can be found through various channels, including professional associations, online directories, referrals from real estate or financial professionals, or by conducting a search on a search engine.

Once an appraiser has been identified, they can be contacted to discuss the scope of work required, the timeline for completing the appraisal, and the cost of the appraisal. The appraiser will then gather data, conduct any necessary research, and provide a written appraisal report that outlines the fair market value of the property or asset based on their analysis and methodology.

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