What does the "appraisal" process involve?

The appraisal process is primarily focused on determining the market value of a property. This involves a systematic assessment conducted by a licensed appraiser who evaluates various factors that contribute to the property's worth. These factors may include the property's location, its physical characteristics, the condition of the property, and current market trends. The appraiser uses established methodologies and guidelines to provide an objective estimate that can be relied upon by buyers, sellers, and financial institutions, especially during the mortgage approval process.

While other options present related concepts, they do not encapsulate the specific role of an appraisal. For instance, estimating property tax obligations or reviewing sales data can be part of a broader market analysis, but they don't reflect the comprehensive and formal evaluation that an appraisal represents. Similarly, surveying physical conditions can be an aspect of property inspection but is distinct from the valuation aspect inherent in an appraisal process. Thus, the selection highlights the unique function of a licensed appraiser in assessing a property's value.