What is the primary goal of an appraisal?

The primary goal of an appraisal is to determine the fair market value of a property. This value reflects what a willing buyer would pay to a willing seller under normal market conditions, ensuring that both parties are acting in their own self-interest but are also informed about the property's characteristics and market dynamics. Appraisals involve analyzing various factors, including comparable sales, property condition, location, and market trends, to arrive at a value that accurately represents the property’s worth.

This determination of fair market value is crucial for various transactions, such as buying or selling property, financing, and ensuring compliance with regulations or standards for lending institutions. It provides an objective assessment that can be relied upon by buyers, sellers, and financial institutions, thereby facilitating more informed decision-making in real estate transactions.