How would you define "Appraisal" in real estate?

In the context of real estate, an appraisal refers to an expert assessment of a property's value. This process is conducted by a licensed appraiser who evaluates various factors, including the location, condition, and features of the property, as well as comparable sales in the area. The primary purpose of an appraisal is to provide an objective and professional opinion of value, which is essential for various transactions such as buying, selling, refinancing, or securing mortgage financing.

This definition is significant as appraisals play a crucial role in determining fair market value and ensuring that buyers and lenders are making informed decisions based on accurate property valuations. By focusing on expert assessment rather than subjective factors, such as emotional impact or renovation costs, the appraisal process upholds a standard within the real estate industry that reflects actual market dynamics.