What does a real estate appraisal primarily evaluate?

A real estate appraisal primarily evaluates the value of the property. This process involves a professional appraiser assessing various aspects of the property, including its location, condition, size, and comparable sales in the area. The appraiser uses standardized methods to arrive at a fair market value, which is essential for various transactions such as buying, selling, refinancing, or assessing taxes.

Understanding the property's value is crucial for all parties involved in a transaction, as it helps determine an appropriate selling price or lending amount. While factors like market demand, development potential, and the owner's financial stability might influence the real estate market, they are not the primary focus of an appraisal. The appraiser's main goal is to provide an unbiased estimation of what the property is worth at a specific point in time.