What is the primary function of a real estate appraisal?

The primary function of a real estate appraisal is to determine the market value of a property. This process involves assessing various factors such as the property’s condition, location, and recent sales of similar properties in the area. The appraisal provides an unbiased estimate that is essential for buyers, sellers, lenders, and appraisers alike.

A professional appraisal ensures that all parties involved have an accurate understanding of a property's worth, which is critical in real estate transactions. This valuation is typically required during the buying, selling, or financing of a property, to ensure that the investment is sound and that both sellers and buyers are not misled about the value of the property in question.

The other options, while related to real estate processes, do not capture the central purpose of what an appraisal specifically aims to achieve. Preparing properties for sale is more aligned with staging and marketing, establishing tax assessments pertains to property tax matters, and negotiating purchase agreements deals with the transactional side of real estate rather than the valuation aspect.