What does the term "appraisal" refer to in real estate?

The term "appraisal" in real estate refers to an evaluation of a property's market value. This professional assessment is typically conducted by a trained and licensed appraiser who examines various factors that influence the property's worth. These factors include the condition of the property, its location, comparable sales in the area, the current real estate market trends, and any unique characteristics that may affect value.

Appraisals are crucial for various transactions, such as buying or selling property, refinancing, and obtaining loans. They provide an impartial opinion about what the property is worth, which can help both buyers and sellers make informed decisions. This is why understanding the market value through an appraisal is a vital step in the real estate process.

The other options, while related to real estate, do not accurately define an appraisal. Negotiating a sale price involves discussions and agreement between buyers and sellers, which is distinct from the objective evaluation that an appraisal represents. Legal ownership transfer pertains to the conveyance of property title, which is a different area of real estate practice. Marketing strategies involve promoting properties to potential buyers, also separate from the valuation focus of an appraisal.