What is the purpose of a secondary appraisal?

A secondary appraisal serves the specific purpose of disputing or reevaluating the value determined by an initial appraisal. This process often occurs when the party requesting the secondary appraisal believes that the first appraisal did not adequately reflect the property's market value, perhaps due to discrepancies in the data used, overlooked comparable properties, or differing opinions on the property's condition and features. By obtaining a secondary appraisal, stakeholders—such as buyers, lenders, or sellers—can gain additional insight and a potentially more favorable assessment of the property's worth. This can be particularly important in real estate transactions involving a significant financial commitment, where accurate valuation is crucial for negotiations and securing financing.

While assessing a buyer’s creditworthiness, evaluating market conditions, and providing a final sales price are important aspects in real estate transactions, they do not specifically define the role or purpose of a secondary appraisal, which is specifically focused on reassessing property value in light of the initial appraisal findings.