What value do real estate appraisers generally estimate?

Real estate appraisers primarily estimate market value, which is defined as the most probable selling price of a property in a competitive market. This value reflects what a willing buyer would pay to a willing seller when both parties have reasonable knowledge of the relevant facts and are acting in their own self-interest. It is derived from various factors including recent sales of comparable properties, current market conditions, and the characteristics of the property itself.

Estimating market value is vital because it helps in determining the price a property can realistically achieve in the marketplace. This is important for various stakeholders such as buyers, sellers, lenders, and investors, as it informs decisions related to purchasing, financing, or investing in real estate.

Other values like cost value refer to the expenses incurred in constructing or replacing a property rather than reflecting the market's perception. Investment value is more subjective and centers on the specific value to a particular investor based on their individual criteria and expected returns. Intrinsic value is often linked to the inherent worth of an asset, which may not align with what the market is currently willing to pay. Therefore, appraisers focus on market value as it provides the most accurate and relevant assessment for real estate transactions.