What is the role of a real estate appraisal in property sales?

The role of a real estate appraisal in property sales is to determine the fair market value of the property. An appraisal provides a professional evaluation of a property's worth based on various factors, including comparable sales in the area, the condition of the property, and current market trends. This assessment is crucial for various stakeholders in a real estate transaction, including buyers, sellers, and lenders, as it helps ensure that the property is priced appropriately.

Knowing the fair market value allows sellers to set realistic asking prices and enables buyers to make informed offers. Lenders often require appraisals to determine how much they are willing to finance in a mortgage, ensuring that the loan amount aligns with the property's value. This objective valuation helps facilitate a smoother transaction process and instills confidence in the investment for all parties involved.