What is a property appraisal?

A property appraisal is an assessment of a property's value conducted by a licensed appraiser, making it essential for various real estate transactions, including sales, refinancing, and investment analysis. This process involves a thorough analysis of comparable properties, market conditions, and the subject property's specific features and conditions.

In the context of real estate, a licensed appraiser leverages their expertise to determine an objective value that reflects current market conditions, ensuring that buyers, sellers, and lenders make informed decisions. This assessment is crucial for establishing a fair market value which can influence negotiations, financing, and even insurance coverage.

The other options listed do not accurately represent a property appraisal: evaluating property taxes involves calculating tax liability rather than assessing market value; a summary of property sales history provides information on past transactions but does not offer a current valuation; and a report detailing property maintenance needs focuses on the physical condition of the property rather than its market value. Thus, recognizing the definition of a property appraisal as an assessment of value by a licensed appraiser is essential in real estate practice.