In real estate terms, what does "appraisal" mean?

The term "appraisal" refers specifically to an evaluation of a property's market value that is conducted by a qualified appraiser. This process involves a comprehensive analysis of various factors including the property’s condition, location, and recent sales of comparable properties in the area. Appraisals are essential in real estate transactions, as they provide an unbiased estimate of a property’s value, which can help buyers, sellers, lenders, and investors make informed decisions.

While other options may relate to aspects of real estate, they do not accurately define "appraisal." For example, merely selling a property quickly refers to the marketing strategies employed, and is distinct from the valuation process. The legal transfer of property ownership is characterized by a deed transfer, while real estate advertising pertains to promoting a property rather than assessing its value. Recognizing this distinction clarifies why the correct interpretation of appraisal is crucial in the real estate industry.