The mortgagee will usually require an appraisal to ensure that the

While ensuring that the purchaser does not overpay is a consideration, the primary focus of the appraisal is to determine the value for securing the loan rather than protecting the buyer's financial interests. The mortgagee's main concern lies in the property's ability to cover the loan amount, not necessarily the fairness of the price paid by the purchaser.

The appraisal does not assess the buyer's income or financial qualifications; this is typically addressed through other processes like income verification and credit checks. The appraisal's role is strictly to establish the property's value, which is separate from the buyer's financial capability to make payments.

Although a competitive selling price may be beneficial, the appraisal's primary purpose is to assess whether the value of the property is sufficient to secure the loan amount. The lender is more concerned with the property's intrinsic value than how it compares to similar properties in the market.