What is the main purpose of an appraisal in real estate?

The main purpose of an appraisal in real estate is to ascertain a market value. An appraisal involves a professional assessment of a property's worth based on various factors such as its location, condition, and comparable sales in the area. This evaluation provides a fair market value which is critical for various stakeholders, including buyers, sellers, and lenders, to make informed decisions.

Determining property taxes, while related to property value, is not the primary goal of an appraisal. Instead, taxation assessments are often conducted separately and rely on different methodologies.

Facilitating the transfer of ownership is a function that may occur as a result of an appraisal but is not the appraisal's primary purpose; rather, it ensures that both parties have a clear understanding of the property's value during negotiations.

Inspecting physical condition is an important aspect of property evaluation but is not the essence of an appraisal. An appraisal focuses on valuation rather than a thorough physical inspection, which is usually the domain of a home inspection conducted for purposes other than valuation, like assessing repairs or maintenance needs.