What is the primary purpose of an appraisal?

The primary purpose of an appraisal is to estimate some type of defined value. An appraisal is a professional assessment conducted by a certified appraiser who evaluates various aspects of a property. This includes its condition, location, and the sale prices of comparable properties in the area. The aim is to ascertain the fair market value, which can be critical for various purposes, including financing or insurance requirements.

While determining market trends, establishing a sale price, and verifying ownership may be relevant activities in the real estate market, they do not encapsulate the core function of an appraisal. An appraisal specifically focuses on providing an objective estimate of value based on statistical data and market analysis, making it an essential tool for buyers, sellers, and lenders in facilitating informed transactional decisions.