Which term refers to an estimate of the fair market value of a property?

An appraisal refers to a professional assessment of the fair market value of a property. This process involves a qualified appraiser conducting a thorough analysis of the property, considering various factors such as location, condition, comparable sales, and current market trends. The key aspect of an appraisal is its objective determination of value, providing banks and lenders with the necessary information to make informed lending decisions regarding a mortgage.

By contrast, while market analysis can involve estimating a property’s value, it often focuses more on broader market trends rather than a specific property valuation. Property assessment typically refers to the value determined for tax purposes and may not reflect the fair market value. A valuation report could encompass various forms of value estimation but is not a term specifically dedicated to fair market valuation in the same manner as an appraisal. Thus, the term that most accurately describes an estimate of the fair market value of a property is an appraisal.