What is the main function of a real estate appraisal?

The main function of a real estate appraisal is to estimate the current market value of a property. This process involves a thorough analysis of various factors, including the property's location, condition, current market trends, and comparable properties (also known as "comps") that have recently sold in the area. An appraiser, typically a licensed professional, conducts this assessment to provide an unbiased and objective valuation that reflects what the property might sell for in the current market.

The importance of accurately estimating a property's market value cannot be overstated, as it plays a critical role in various real estate transactions, including sales, financing, and investment decisions. Appraisals are often required by lenders when a property is being mortgaged to ensure that the loan amount aligns with the property's worth.

Other options, while related to real estate, do not capture the essence of an appraisal. For instance, determining the selling price is typically at the discretion of the seller based on multiple factors and is not solely reliant on an appraisal. Providing legal descriptions of properties is a function more associated with title and legal professionals, while assessing property taxes is typically performed by tax authorities based on the appraised value but serves a different purpose from what an appraisal aims to achieve.