Which of the following best describes the purpose of an appraisal report?

The purpose of an appraisal report is primarily to estimate the market value of the property. This estimation is crucial for various stakeholders, including buyers, sellers, lenders, and real estate agents, as it helps them understand the fair value of a property in a current market context.

An appraisal report contains a detailed analysis of the property in question, incorporating factors such as recent comparable sales, market trends, and the characteristics of the property itself. Through this structured approach, the report serves as a credible and objective assessment that guides decision-making throughout real estate transactions.

While assessing the physical condition of the property or determining its investment potential are important aspects of property evaluation, they do not encapsulate the primary function of an appraisal report. The report’s main goal is to provide an accurate valuation, which can inform all other analyses and discussions related to that property.