What is the primary function of a property appraisal?

The primary function of a property appraisal is to determine the market value of the property. This process involves a thorough assessment of various factors, including the property's condition, location, and comparable sales in the area. By providing an unbiased estimate of value, an appraisal plays a critical role in various real estate transactions, such as buying, selling, or refinancing a property.

Understanding the market value helps buyers and sellers make informed decisions during the sales process. It can also be essential for lenders when considering mortgage applications to ensure that the loan amount does not exceed the property's value. Without an accurate appraisal, parties involved could face financial risks or disputes over worth, highlighting the importance of this process in the real estate industry.