Direct answer
What does Appraisal mean?
An opinion of value developed by a qualified appraiser for an identified use, property interest and effective date.
Exam cue: Know the three classic approaches and when each has useful evidence.
What does it look like in a question?
New York example
A lender orders an appraisal to support its collateral decision for a proposed mortgage.
Common exam trap
What should you not confuse it with?
An appraisal is not a property inspection and does not determine the eventual sale price.
Related valuation terms
CapitalizationThe process of converting income into an indication of value.ComparableA property used as market evidence because it is sufficiently similar to the property being analyzed.Comparative market analysisA broker's analysis of relevant market data to help a seller or buyer consider a probable price range.Cost approachA valuation approach that adds land value to the depreciated cost of the improvements.DepreciationA loss in property value from physical deterioration, functional obsolescence or external obsolescence in appraisal.External obsolescenceA loss in value caused by influences outside the property.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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