Definition: An appraisal performed by an independent party that does not have a vested interest in the transaction.

Tips: Business brokers often claim that third-party appraisals are unbiased; however, business brokers purport the benefits of third-party appraisals only because they lack the skills to perform an appraisal within their office, and then often sell these appraisals at a markup of 100% to 500%. Some appraisal companies sell an appraisal to a business broker for as low as $300-$800, and business brokers may then charge clients $1,000-$5,000 for these reports.