What is the purpose of an appraisal report?

The purpose of an appraisal report is to provide a detailed analysis and opinion of a property's value. This report is a crucial document prepared by a certified appraiser that reflects a thorough evaluation of the property, taking into account various factors such as location, condition, comparable sales, and market trends. The appraiser utilizes standardized methodologies to ensure the valuation is reliable and well-supported.

An appraisal report serves multiple stakeholders, such as buyers, sellers, lending institutions, and real estate professionals, by offering an objective assessment. This process helps in making informed decisions regarding the property transaction, ensuring that all parties have a clear understanding of the property's worth based on comprehensive analysis rather than subjective opinion.

Other options, while they address important aspects of the real estate process, do not capture the primary function of an appraisal report. Advertising a property for sale, estimating rental income, and facilitating negotiation are activities that may occur in real estate transactions, but they are not the central focus of a formal appraisal report, which is fundamentally about establishing value.