What is the meaning of evaluation?

evaluation is the act or process of estimating the market value of real estate when a transaction secured by real estate falls within one or more of the exemptions set forth to the requirements for obtaining a full appraisal. If a transaction falls under one of three exemptions, an evaluation is required. If the transaction is exempted under one or more exemptions not including one of the three that require an evaluation, an evaluation may still conducted if the lender considers it prudent. An evaluation may be conducted by independent bank personnel or by an appraiser. When an appraiser conducts such an estimate of value, it is called a limited appraisal and must meet requirements for limited appraisals. See: limited appraisals and USPAP.