What is the purpose of a "property appraisal"?

The purpose of a property appraisal is to estimate the market value of the property. An appraisal provides a professional opinion regarding how much a property is worth based on various factors, including the property's condition, location, and comparable sales in the area. This valuation is essential for buyers, sellers, and lenders, as it helps determine a fair price in real estate transactions.

Appraisers use standardized methods and criteria to conduct their evaluations, ensuring that their assessments reflect the current market trends and property values. Additionally, an accurate appraisal can play a crucial role when obtaining financing, as lenders typically require a property appraisal before approving a mortgage to ensure that the loan amount aligns with the property's value.

Legal descriptions of a property, assessing repair needs, and evaluating rental potential are related aspects but do not represent the primary purpose of an appraisal. A legal description provides the exact boundaries and identification of the property, repair assessments focus on maintenance and necessary improvements, and rental potential evaluations consider how much income a property could generate if rented out. While these elements can be important in various contexts within real estate, they do not fulfill the primary objective of estimating market value, which is the essence of a property appraisal.