What is the primary purpose of a property appraisal?

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The primary purpose of a property appraisal is to establish the value for sale, refinancing, or taxation. An appraisal involves a thorough analysis of the property, including its condition, location, and comparable sales in the area, to determine its current market value. This value is crucial for various real estate transactions, such as sales between buyers and sellers, refinancing loans, and assessing property taxes, ensuring that both buyers and lenders have an accurate understanding of the property's worth in the market.

In contrast, while determining tax liability and property taxes is associated with appraisals, it is not the sole purpose. Zoning regulations involve legal classifications that dictate how a property can be used but are not a function of appraisal. Similarly, while appraisals may consider the physical aspects of a property, they do not primarily focus on evaluating structural integrity; that's typically the role of a home inspection. Thus, establishing value for multiple important financial and legal transactions is the essential and primary role of a property appraisal.

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