What is the purpose of an appraisal in real estate?

An appraisal in real estate primarily serves to assess a property's market value. This process involves a professional appraiser evaluating various factors such as the property's condition, location, comparable sales in the area, and current market trends. The appraiser synthesizes this information to arrive at a value that reflects what a buyer would realistically pay for the property in a competitive market.

The accurate assessment of market value is crucial in various situations, such as securing financing for a mortgage, determining a proper listing price for sellers, or agreeing on a price during negotiations. This function is vital as it provides a standardized method to value properties, contributing to fair transactions between buyers and sellers.

While estimating repair costs, providing legal documentation, or creating marketing materials are important aspects of the real estate process, they do not capture the main objective of an appraisal, which is strictly to determine the market value of a property.