What is the primary outcome of a real estate appraisal?

The primary outcome of a real estate appraisal is to determine a reasonable selling price for a property. An appraisal serves as an objective assessment of a property's value based on various factors, including comparable sales, market trends, property condition, and location. This valuation is essential for sellers to set a competitive price that reflects the current market conditions and helps buyers understand the fair market value of the property they are considering.

While assessing property condition, creating a marketing strategy, and establishing neighborhood demographics may be important elements in the overall real estate process, they are not the primary focus of an appraisal. An appraisal's main purpose is focused specifically on determining the value of a property, which directly influences selling prices in real estate transactions.