What is a primary reason to have a property appraisal conducted?

Having a property appraisal conducted primarily serves the purpose of establishing a definitive selling price and negotiating terms for a property transaction. An appraisal provides an unbiased assessment of a property's market value, which takes into account various factors such as location, condition, and comparable property sales. This valuation is crucial for both sellers and buyers as it helps them make informed decisions regarding the fair market price, ensuring that sellers do not undervalue their property and buyers do not overpay.

The appraisal also plays a significant role in negotiations, as it can provide a benchmark for discussions about the price and terms of the sale. If a buyer is interested in purchasing a property, the appraisal helps confirm that their offered price aligns with the current market value, thereby facilitating smoother negotiations.

While property tax obligations, damage cost assessments, and legal requirements for eviction do involve property valuation considerations, they are not primary reasons for conducting an appraisal in the context of buying or selling real estate. The focus of an appraisal is fundamentally tied to establishing value to aid in real estate transactions.