Who typically uses the appraisal to determine the price to pay for the property?

The buyer typically uses the appraisal to determine the price to pay for the property because the appraisal provides an independent, professional opinion of the property's market value. This information helps the buyer assess whether the asking price aligns with the property's actual worth. It is particularly essential for buyers as it can influence their decision-making process, especially if they are securing financing through a mortgage. Lenders often require an appraisal to ensure that the loan amount does not exceed the property's value, which further emphasizes the appraisal's importance for the buyer in negotiating the purchase price.

While real estate agents, investors, and sellers may reference appraisals, they do so from different perspectives. Agents might guide their clients based on appraisal findings, investors may use appraisals for financial analysis, and sellers might look at appraisals to set realistic listing prices. However, the primary reliance on the appraisal to determine the price paid is most directly applied by the buyer.