What is the purpose of an appraisal?

The purpose of an appraisal is to provide an unbiased assessment of a property's value. This involves a thorough analysis of various factors, including the property’s condition, location, and comparable sales in the area. Appraisers use established methodologies and guidelines to ensure that their evaluations are objective and reflect the current market conditions.

This assessment is crucial for several reasons: it helps buyers and sellers gauge a fair price for the property, assists lenders in determining the loan amount they are willing to offer, and contributes to property tax assessments. An accurate appraisal is fundamental for any real estate transaction, ensuring all parties involved have a clear understanding of the property's worth based on objective data rather than subjective opinions.

In contrast, determining legal ownership focuses on property rights and documentation, finalizing a sale involves various legal and procedural steps, and establishing rental prices generally takes into account market demand and property features rather than an official appraisal process.