What is the function of a real estate appraisal?

The function of a real estate appraisal primarily revolves around determining a property’s fair market value. This process involves a professional appraiser evaluating various factors, such as the property’s location, size, condition, and the current market trends to arrive at an objective value. This assessment is crucial for various real estate transactions, including buying, selling, or refinancing properties, as it ensures that both parties involved have a clear understanding of the property’s worth based on comprehensive analysis rather than subjective opinions. Understanding the fair market value helps buyers make informed purchasing decisions and assists sellers in pricing their properties appropriately.

While identifying potential maintenance issues, assessing aesthetic value, and evaluating potential rental income may be aspects of property management or sales, they do not encompass the primary goal of an appraisal, which is focused specifically on valuing the property in monetary terms.