Massachusetts Real Estate License Practice Test 2025 - Free Real Estate License Practice Questions and Study Guide

An appraisal provides a defined value supported by various influences, reflecting a thorough analysis of the property's worth. Appraisers consider multiple factors, such as the property's location, physical characteristics, condition, and current market trends. They also examine comparable properties and their selling prices to ensure that the valuation is accurate and justifiable. This comprehensive approach leads to an unbiased opinion of value that is essential for buyers, sellers, lenders, and other stakeholders in real estate transactions.

While estimated selling price, market comparison, and historical significance can be part of the appraisal process, they do not encapsulate the primary purpose of an appraisal as precisely as a defined value supported by various influences does. An appraisal aims to provide a conclusive value that integrates all relevant data, making it more than just a rough estimate or a singular perspective on the property’s worth.