What is the most common purpose for an appraisal when a property has an accepted purchase offer?

The most common purpose for an appraisal when a property has an accepted purchase offer is to inform the buyer's lender of the value of the property that will be acting as security. This is a crucial step in the mortgage process because lenders require an independent assessment of the property's value before approving a loan. The appraisal ensures that the loan amount does not exceed the property's fair market value, protecting both the buyer and the lender's financial interests.

While other purposes such as estimating replacement costs for insurance, renegotiating sales prices due to defects, or reassuring sellers and agents may occur, they are not the primary reason an appraisal is conducted in this context. The appraisal focuses on providing an accurate valuation to facilitate the mortgage approval process, making it a pivotal element in real estate transactions involving financing.