What is the main function of an appraisal report?

The primary function of an appraisal report is to provide a valuation based on comprehensive analysis. An appraisal serves as an objective assessment of a property's value, considering various factors such as the property's condition, location, and comparable sales in the area. Professional appraisers utilize standardized methods and theories to determine a fair market value, which is essential for transactions such as buying, selling, or refinancing real estate. This assessment helps clients understand the worth of a property in its current state and is critical for lenders, buyers, and sellers during negotiations.

In contrast, predicting future market trends involves forecasting conditions that may affect real estate values, which is not the specific aim of an appraisal report. While property improvements may enhance value and are sometimes discussed in an appraisal, they are not central to the report itself. Additionally, listing properties for sale pertains to real estate marketing and is separate from the appraisal process, which focuses primarily on valuing the property rather than facilitating its sale.