Oregon Real Estate Practice Test 2026 - Free Real Estate Practice Questions and Study Guide

The primary purpose of an appraisal in real estate is to estimate a property's value for financing or sales. This process involves a licensed appraiser conducting a thorough analysis of various factors, including the property's characteristics, recent sales of comparable properties, market conditions, and the overall economy. The valuation produced by the appraisal serves as a critical tool for buyers, sellers, and lenders, as it ensures that parties are making informed decisions based on the property's fair market value.

While assessing structural integrity, providing tax assessments, and determining rental prices are all important aspects of real estate, they fall outside the primary objective of an appraisal. Structural assessments are usually carried out by home inspectors, tax assessments are generally performed by government entities for taxation purposes, and rental price evaluations often require market analysis and are conducted in a context separate from formal appraisal processes. An appraisal's specific focus on value estimation identifies it as a key component in property transactions and financing arrangements.