Real Estate Appraisal Practice Exam 2025 – Complete Prep Resource

The primary purpose of property appraisal is to establish a fair market value for properties. This fair market value is crucial as it represents the price at which a property would sell in an open and competitive market. Appraisals are conducted using various methods and data which reflect the current market conditions, comparable property sales, and other relevant factors, ensuring that the value assigned to a property is both accurate and equitable.

While determining potential resale value is related, it is a more specific instance of appraising rather than the main objective. Property taxation utilizes appraisals, but that is a secondary purpose influenced by the establishment of fair market value. Assessing property condition, although important, is generally a separate aspect of property evaluation and does not directly serve the primary purpose of determining value. Thus, establishing fair market value encompasses the broader intentions of property appraisal practice.