What is the primary purpose of a property appraisal?

The primary purpose of a property appraisal is to estimate property value for a transaction. Appraisers evaluate various factors, including location, size, condition, and comparable sales, to provide an unbiased estimate of a property's market value. This valuation is crucial in real estate transactions, as it helps buyers and sellers agree on a fair price, assists lenders in determining loan amounts, and ensures that buyers are making informed decisions based on current market conditions.

While establishing a selling price, determining property tax assessments, and assessing property investment potential are all important aspects related to real estate, they are not the primary focus of an appraisal. The core function of an appraisal is specifically to yield a value that reflects what the property would sell for in the current market, making it essential for all parties involved in a transaction to understand the worth of the property at that moment.