A home appraisal is a professional evaluation of the value of a residential property. It is typically conducted by a licensed or certified appraiser who has expertise in assessing real estate values. Home appraisals are usually ordered by lenders or financial institutions when a borrower applies for a mortgage to purchase or refinance a property.

The primary purpose of a home appraisal is to determine the fair market value of the property based on various factors such as its location, size, condition, features, and comparable properties in the area. Using this information and their expertise, the appraiser will then prepare a comprehensive report that includes their assessment of the property's value. Appraisals are essential for both buyers and lenders because they provide an objective and unbiased estimate of the property's value. This helps ensure that the lender is not providing more money than the property is worth and that the borrower is not overpaying for the home.

It's important to note that a home appraisal is different from a home inspection. While an appraisal focuses on determining the value of the property, a home inspection is a separate process that assesses the condition of the home, identifying any potential issues or needed repairs.

Ultimately, a home appraisal is a crucial step in the homebuying process and serves to protect both the lender and the borrower by ensuring an accurate valuation of the property.