What does the term appraisal refer to?

The term appraisal specifically refers to an estimate of a property's market value that is conducted by a licensed appraiser. This process involves a thorough evaluation of the property, considering various factors such as its condition, location, comparable sales in the area, and current real estate market trends. The purpose of an appraisal is to provide an objective and professional opinion of value, which is often required for financing, taxation, or sales purposes.

Appraisals play a critical role in real estate transactions as they help ensure that buyers and lenders are not overpaying for a property, providing a safeguard against inflated market conditions. The professionalism and licensing of the appraiser add credibility to the valuation, making it a reliable point of reference in real estate dealings.

In contrast, other choices do not accurately define appraisal. Assessing buyer interest is more related to market analysis rather than property valuation. A detailed report on repairs pertains to a home inspection rather than an appraisal, which focuses on value rather than physical condition. Finally, a legal document granting ownership relates to property deeds and title transfers, rather than the valuation process that appraisals entail.