What is the primary purpose of real property appraisal?

The primary purpose of real property appraisal is to provide an unbiased estimate of the market value of a property. This valuation process is essential for various stakeholders, including buyers, sellers, lenders, and investors, as it anchors real estate transactions to a fair and objective measure. An objective appraisal helps ensure that all parties involved have a clear understanding of the property's worth based on comparable sales, property condition, location, and current market trends.

Unlike options that focus on aspects such as potential selling price, future appreciation, or physical condition, the core function of an appraisal is to ascertain the market value based on existing data and analysis, free from personal bias or emotion. This impartial estimation is vital, as it serves as a foundational element for making informed decisions about buying, selling, or financing real estate.