What is the process of estimating the worth of a property conducted by an appraiser called?

What is the process of estimating the worth of a property conducted by an appraiser called?

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

Answer: (B)

The process of estimating the worth of a property conducted by an appraiser is called valuation. Valuation involves a systematic evaluation of various factors that determine the value of a property, including its characteristics, location, and the current market conditions. This process is essential in real estate transactions, mortgage lending, and property taxation, as it provides a professional estimate that reflects what buyers are willing to pay and what sellers expect to receive for the property. While assessment and appraisal are related terms, they have different connotations. Assessment typically refers to the evaluation of a property for tax purposes, often based on predetermined criteria rather than a market-based approach. Appraisal, while also a term used for the formal valuation process, is often seen as the actual report generated by an appraiser, summarizing their findings and providing a value estimate. In contrast, valuation is the overarching term that encompasses various methods used to arrive at a property's worth.

The process of estimating the worth of a property conducted by an appraiser is called valuation. Valuation involves a systematic evaluation of various factors that determine the value of a property, including its characteristics, location, and the current market conditions. This process is essential in real estate transactions, mortgage lending, and property taxation, as it provides a professional estimate that reflects what buyers are willing to pay and what sellers expect to receive for the property.

While assessment and appraisal are related terms, they have different connotations. Assessment typically refers to the evaluation of a property for tax purposes, often based on predetermined criteria rather than a market-based approach. Appraisal, while also a term used for the formal valuation process, is often seen as the actual report generated by an appraiser, summarizing their findings and providing a value estimate. In contrast, valuation is the overarching term that encompasses various methods used to arrive at a property's worth.