What is the primary purpose of conducting an appraisal?

The primary purpose of conducting an appraisal is to establish the market value of a property. This process involves a comprehensive analysis of various factors, including the property's location, condition, comparable sales, and overall market trends. By determining the market value, appraisers provide critical information to buyers, sellers, lenders, and investors, enabling them to make informed decisions regarding property transactions.

While appraisals can indirectly influence property taxes, renovation costs, or rental prices, their main objective is to assign a fair market value. Other aspects, such as assessing renovation costs, might be components of a different type of analysis or appraisal but do not encompass the core aim of the appraisal process itself. Setting rental prices is also connected but is typically influenced by market value rather than serving as the primary reason for appraisals.