What is the primary purpose of a property appraisal?

The primary purpose of a property appraisal is to determine the fair market value of a property. An appraisal is a professional assessment conducted by a qualified appraiser who evaluates various factors related to the property, including its condition, location, and comparable sales in the area. This valuation is crucial for making informed decisions in real estate transactions, whether buying, selling, or financing a property.

Knowing the fair market value helps ensure that buyers are not overpaying and that sellers are pricing their properties competitively. Additionally, lenders often require appraisals to justify the loan amount they are willing to provide based on the property's current market value. This practice maintains the integrity of the real estate market and protects all parties involved in a transaction.