What is the function of a real estate appraisal?

The function of a real estate appraisal is fundamentally to assess a property's market value. An appraisal provides an unbiased evaluation of the property, typically conducted by a qualified appraiser, who considers various factors such as the property's condition, location, size, and the recent sales of comparable properties in the area. This valuation is crucial for both buyers and sellers, as it aids in making informed decisions based on the current market conditions.

While setting an asking price for a property may be influenced by the appraisal, the appraisal itself does not dictate the asking price but rather reflects the objective market value of the property. Similarly, negotiating closing costs is a separate concern that typically involves various parties and costs beyond just the property's value. Verifying property taxes also does not fall under the appraisal's scope, as tax assessments are determined by local taxing authorities based on different criteria.

In summary, the primary role of a real estate appraisal is to provide an accurate assessment of market value, assisting stakeholders in the real estate transaction process.