What is the primary purpose of a property appraisal?

The primary purpose of a property appraisal is to assess the selling price in negotiations. An appraisal provides an estimate of a property's market value based on various factors such as the location, condition, comparable sales, and market trends. This valuation is crucial during the negotiation process between buyers and sellers, as it informs both parties about a fair price for the property.

While determining the tax value can be a secondary outcome of an appraisal, it is not the main goal. Similarly, evaluating the condition of the property is part of the inspection process, which is distinct from the appraisal itself. Additionally, providing financing options is typically the role of financial institutions or lenders rather than the appraisal process. Therefore, understanding that the fundamental objective of an appraisal is to establish a market value that can support negotiations is key to grasping its significance in real estate transactions.