What is the primary purpose of an appraisal report?

The primary purpose of an appraisal report is to provide an objective opinion of property value. Appraisal reports are critical documents prepared by licensed appraisers that evaluate a property's worth based on various factors, including comparable sales, property condition, and characteristics specific to the property and its location. This objective assessment plays a vital role in real estate transactions, influencing decisions made by buyers, sellers, lenders, and other stakeholders.

In contrast, while assessing market trends can be a component of the appraisal process, it is not the main focus of an appraisal report itself. Legal reviews of property transactions are covered under separate legal practices and do not fall within the appraisal's scope. Additionally, outlining maintenance requirements pertains to property management or inspections rather than appraisals, which are centered on determining value rather than operational concerns. Therefore, the objective opinion of property value is the cornerstone of an appraisal report, serving as an essential resource in real estate dealings.