What is the definition of “appraisal” in real estate?

The definition of "appraisal" in real estate is centered around the concept of providing an unbiased professional opinion of a property's value. An appraisal is typically conducted by a certified appraiser who assesses various factors, including the property's condition, location, and comparable sales in the area. This professional evaluation is crucial in many real estate transactions, as it helps ensure that buyers and sellers have a clear understanding of the property's market value, which can affect financing, investment decisions, and pricing strategies.

In contrast, other definitions don't capture the essence of an appraisal in the same way. For instance, a subjective evaluation of a property's worth lacks the standardization and professionalism inherent in an appraisal. An estimated value set by the seller is influenced by the seller's perspective and motivations, which may not reflect the true market value. Lastly, a calculation of property tax liabilities is unrelated to the property’s market value; it pertains to how much tax is owed based on assessed value rather than an impartial valuation. Thus, the most accurate definition is one that reflects an unbiased professional perspective, which is why the third option is correct.