What is the primary purpose of an appraisal?

The primary purpose of an appraisal is to determine market value. This assessment involves a comprehensive analysis of various factors that influence the value of a property, including its location, condition, comparable sales in the area, and current market trends. Appraisals provide a professional opinion that reflects the price a buyer may be willing to pay and a seller may accept in an open market scenario, ensuring that both parties have a reliable estimate of the property's worth.

While assessing property tax liability can be a secondary function of an appraisal, it does not capture the broader and primary objective of establishing market value. Evaluating lease agreements and facilitating property sales may involve appraisals, but they are not the central focus. Ultimately, the valuation provided by an appraisal is critical for various transactions, financing, and investment decisions, which reinforces its role in determining market value as the primary purpose.