What does an appraisal primarily assess?

An appraisal primarily assesses market value, which reflects the most probable price that a property would sell for in a competitive and open market. This process involves a comprehensive evaluation of property characteristics, recent sales of comparable properties, current market trends, and the overall economic environment.

Understanding market value is essential for various stakeholders, including buyers, sellers, lenders, and investors, as it informs decisions regarding fair pricing during transactions. The appraisal process also ensures that lenders have a clear understanding of the property's worth when considering loans.

While building permits, property taxes, and construction quality are important factors in real estate, they do not directly determine the market value. Building permits relate to the legalities of construction, property taxes are calculated based on assessed values rather than market analysis, and construction quality assesses the physical attributes of the structure. Hence, these elements play supporting roles but are not the primary focus of an appraisal.