What is the primary purpose of a real estate appraisal?

The primary purpose of a real estate appraisal is to determine the market value of a property. This process involves a professional appraiser assessing the property based on various factors, including its location, condition, and comparable sales in the area. The market value is crucial, as it helps buyers, sellers, and lenders make informed decisions regarding real estate transactions and financing.

While assessing the physical condition of a property and estimating rental value are important aspects of real estate, they are not the primary focus of an appraisal. Such assessments might form part of a broader evaluation but do not encompass the appraiser's essential function of determining what the property is worth in the current market. Additionally, calculating property taxes is typically the responsibility of tax assessors rather than appraisers, making it secondary to the value determination role of an appraisal.