What is the purpose of a real estate appraisal?

The purpose of a real estate appraisal is to determine the market value of a property. This assessment is conducted by a licensed appraiser who evaluates various factors, such as the property's condition, location, comparable sales in the area, and current market trends. The resulting appraisal report provides an unbiased estimate that can be used by buyers, sellers, lenders, and investors to make informed decisions regarding the property.

Understanding the market value is crucial in real estate transactions; it influences pricing strategies, financing options, and investment returns. This valuation helps ensure that all parties involved have a clear understanding of the property's worth in the current market context. Thus, the appraisal serves as a foundational tool in the decision-making process related to real estate.