Texas Real Estate State Practice Exam 2025 – All-in-One Guide to Master Your License Success!

The main purpose of a real estate appraisal is to determine the market value of a property for various purposes. Appraisals are essential assessments conducted by qualified professionals to provide an unbiased estimate of a property’s value based on factors such as location, condition, comparable sales, and current market trends. This valuation is crucial not only for buyers and sellers in negotiations and pricing but also for lenders during the financing process and for tax assessments.

While property taxes might be influenced by appraisals, the aim of an appraisal itself is not to increase property taxes. Conducting inspections is a different activity often part of the buying process but not the primary focus of appraisals. Verifying ownership might occur during title searches or legal proceedings, which are not the objectives of a property appraisal. Thus, identifying market value is the central role that appraisals serve in real estate transactions.