Survey and Appraisal

A survey or an appraisal is a formal inspection of collateral being used to secure a loan typically done by a certified or licensed professional. Lenders will require this when it is important to know what a piece of collateral is actually worth and what comparable collateral is being sold for at a particular time relative to making a loan secured by the collateral in question. It is typical to call this inspection a Survey when dealing with yachts and airplanes and an appraisal when dealing with real estate or jewelry. In either case, the amount of money that is being lent to a borrower is usually a percentage of the value established in the survey or appraisal.