The mortgagee will usually require an appraisal to ensure that the

While ensuring the purchaser does not overpay is a consideration, the primary reason for the appraisal is to protect the lender's investment rather than the buyer's interests. The appraisal confirms that the loan amount is secured by a property that holds value, rather than simply verifying the fairness of the purchase price.

The buyer’s income is typically assessed through a different process called underwriting, which examines financial stability and creditworthiness. The appraisal is focused on the property's value and not on the buyer's financial capability to make payments, which is a separate aspect of the mortgage approval process.

Although appraisals may compare the property to similar homes to determine its value, the goal is not to ensure the selling price is competitive. The appraisal aims to establish the property’s worth for loan security, not to assess market competitiveness or establish pricing strategies.