What is the primary goal of a property appraisal?

The primary goal of a property appraisal is to establish a property’s market value. This value is determined through a systematic evaluation of various factors, including the property’s condition, location, comparable sales, and current market trends. The appraisal provides an impartial assessment that is essential for various real estate transactions, including sales, refinancing, and investment analyses.

By determining the fair market value, appraisals help buyers and sellers make informed decisions, ensuring they are paying or receiving a fair price. Additionally, lenders often require an appraisal before approving a mortgage to ensure that the property value supports the loan amount, thereby safeguarding their investment.

Understanding market value is crucial for all parties involved in real estate transactions, as it reflects the appropriate amount one should expect to receive or pay in the current market conditions.