Financial appraisal and Marketing appraisal

Financial appraisal is an objective evaluation of the profitability and financial strength of a  Business unit. Many a times, the terms financial performance appraisal and financial statement analysis are used as synonymous. The techniques of financial statement analysis are used for the  purpose of financial appraisal.

Market Appraisal is the review carried out by financial institutions to ascertain that the products  manufactured by the project can be sold and its value realized.

A market appraisal is a form of an assessment or an evaluation that is done by some authorized  financial institution or an agent who deals with the estate. They can recommend the various ways  in which the products that are being manufactured or which are being sold, its value is realized  in the best possible way and is also priced at its best in a given timescale.

The market appraisal thus refers to that formal assessment. In general, a market appraisal is  something that one gets when one the owner of a property would ask their agent about what is  the total worth of their property.

Thus the market appraisal is a kind of advice given by the agent to the owner of any particular  property. This advice that is provided by the estate is generally in quite a proximity to the actual  value of that property in the market. Also, the pricing may vary depending upon the direction in  which the market is moving.

Thus it can make a huge difference. Now if a market is found to moving in the upward direction,  then it is more like that the values of the appraisal will be lifted higher. And here the result that  is obtained, chances are that it will be greatly influenced by the desire of the owner to sell their  property and to list it with the agent he was in talks with at the first place.

Thus for an appraisal to be relatively high is not that common in the market. This appraisal will  not be a proper valuation, so one can’t sue it with any particular lender such that the market value of the property can be well established. 

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