Which statement describes appraisal accurately?

An appraisal accurately estimates a property's market value by a qualified appraiser. This process involves a detailed analysis of various factors that contribute to the property's worth, such as its location, condition, size, and the recent sale prices of comparable properties in the area. Appraisers are trained professionals who utilize standardized methods and guidelines to arrive at an unbiased estimate of value, which is essential for purposes such as buying, selling, financing, or taxation.

The role of the appraiser is crucial, as it helps inform buyers, sellers, and financial institutions about the fair market value of a property. This is particularly important in real estate transactions, where a proper understanding of the property's value can impact negotiations and financing.

In contrast, the other choices do not accurately reflect the purpose and scope of an appraisal. For example, appraisals are not limited to tax purposes but are a fundamental component of various real estate activities. Furthermore, while real estate agents may have knowledge of property values, appraisals must be conducted by certified appraisers who follow professional standards. Lastly, appraisals focus on estimating value rather than determining legal ownership status, which is handled through title searches and legal documentation.