The mortgagee will usually require an appraisal to ensure that the

While an appraisal can provide insight into fair market value, its main purpose for the mortgagee is to assess the property's value as collateral rather than to protect the purchaser from overpaying. The focus is on the lender's security rather than the buyer's financial decision.

This choice pertains to the borrower's financial qualifications and ability to repay the loan, which is assessed through a different process involving income verification and credit checks. An appraisal does not determine the buyer's income or ability to make payments.

Although an appraisal may indicate whether the selling price aligns with comparable properties, this is not the primary concern of the mortgagee. The lender is more focused on the property's assessed value to ensure it sufficiently secures the loan rather than just its competitiveness in the market.