What does "appraisal" mean in the context of real estate?

In the context of real estate, "appraisal" refers to an estimation of a property's market value. This process is typically conducted by a licensed appraiser who evaluates various factors including the property's condition, location, and comparable sales data from similar properties in the area. The purpose of an appraisal is to provide a professional, unbiased assessment of what a property is worth in the current market, which is essential for buyers, sellers, and lenders during real estate transactions.

An accurate appraisal is vital in determining fair pricing for the property and can influence the terms of mortgages or financing. Knowing the market value helps all parties involved make informed decisions about the investment, potentially affecting negotiations or financing aspects tied to the transaction.

The other options pertain to different aspects of real estate but do not define appraisal. A detailed description of a property’s features would fall under property listings or marketing materials, not valuation. A legal document for transferring ownership relates to contracts or deeds, and guidelines for acceptable rental rates involve market analysis but are not directly tied to the assessment of a property's value.