What is the primary purpose of a real estate appraisal?

The primary purpose of a real estate appraisal is to establish a property's market value. An appraisal provides an objective assessment of what a property is worth in the current market, based on various factors such as location, condition, comparable sales, and current market trends. This value serves as a critical reference point for buyers, sellers, and lenders, underpinning decisions in real estate transactions.

While assessing financial investments, determining listing prices, and predicting future market trends can be considerations in the realm of real estate, they are not the main objective of an appraisal. Instead, appraisals focus explicitly on providing a value at a specific time, which can then inform those other aspects of real estate transactions.