What is the definition of an appraisal?

An appraisal is defined as an estimate of value for a specific purpose, party, and property as of a specific date. This definition captures the essence of what an appraisal entails: it not only seeks to determine the monetary value of a property but also takes into account the context in which this valuation is provided. Each appraisal is tailored to meet the needs of a specific requestor, whether it be for financing, taxation, or any other purpose that necessitates a formal property valuation.

The specificity of the date is crucial because real estate values can fluctuate over time due to market conditions, economic factors, and changes in the property itself. Without this time frame, the appraisal could be misleading, as the value at one point could be significantly different at another.

Other options do not encompass the full scope of an appraisal. An analysis of market trends, while useful, does not provide a direct estimate of a property's value. A review of property conditions can inform an appraisal but is just one component of the overall assessment. Lastly, a legal description of a property is focused on the boundaries and characteristics of the land rather than its market value. Thus, the second option most accurately reflects the comprehensive nature of an appraisal in the real estate field.