An appraisal is an evaluation of a property’s market value, often conducted by a certified appraiser. It’s commonly required in real estate transactions to ensure that a property is worth the amount being paid, especially when financing through a loan. The appraiser considers factors like the property’s location, condition, and recent sales of similar properties. Lenders use the appraisal to confirm that they’re lending a reasonable amount relative to the property’s value, reducing the risk of lending more than a property is worth.