What is the primary purpose of an appraisal report?

The primary purpose of an appraisal report is to summarize the appraisal process and its results. An appraisal report provides a clear and concise analysis of the property in question, detailing the methods used to evaluate its value, the data gathered, and the conclusions reached by the appraiser. This report serves to inform the client, whether that be a buyer, seller, lender, or other stakeholders, about the appraised value and the reasoning behind it.

In addition to summarizing the analysis and findings, the report might include information about comparable properties, market conditions, and specific characteristics of the subject property that may affect its value. This comprehensive summary is crucial as it aids the intended users in making informed decisions based on the property's recognized market value at a given point in time.

While providing detailed analytics of the local real estate market and estimating future property trends can contribute to the appraisal process, these elements are not the primary focus of the report itself. Additionally, while the appraisal report can serve as legal documentation in property transactions, this is considered a secondary function rather than its primary purpose. Therefore, summarizing the appraisal process and its results is central to the value and intent of the appraisal report.