What is the main objective of undertaking a real estate appraisal?

The main objective of undertaking a real estate appraisal is to estimate the value of the property. Appraisals are a systematic process where a qualified appraiser examines various factors, such as the property’s features, the condition of the structure, comparable sales in the area, and current market conditions, to arrive at an unbiased opinion of value. This estimated value is crucial for various transactions, including sales, financing, taxation, and establishing insurance coverage.

Identifying potential buyers, assessing property condition, and evaluating local market trends are important aspects of the real estate market, but they serve different purposes and do not focus specifically on determining the value of a property. While these factors can influence an appraisal, they are not the primary goal of the appraisal process itself. The main focus is always to arrive at a current and accurate market value, which the appraiser provides to stakeholders involved in the real estate transaction.