What is the primary function of an appraisal?

The primary function of an appraisal is to determine the current market value of a property. Appraisers utilize a range of methodologies and comparisons with similar properties that have recently sold to establish a fair market value. This assessment is crucial for various stakeholders, including buyers, sellers, and lenders, as it provides an unbiased estimate of a property's worth based on the current real estate market conditions.

While improving a property's appearance may attract buyers and contribute to a higher sale price, it is not the function of an appraisal. Moreover, assessing zoning regulations is a different process focused on land use and development rights, not on valuing the property itself. Similarly, finalizing a sale transaction involves legal and procedural steps that occur after the property's value has already been established through the appraisal process. Thus, determining the current market value is the core purpose of conducting an appraisal.