What does a point estimate in appraisal refer to?

A point estimate in appraisal specifically refers to the final value estimate presented as a single dollar amount. This is the most precise and definitive valuation that an appraiser assigns to a property, reflecting the appraiser's professional judgment based on the data, analysis, and methodologies they have employed. By stating a single dollar amount, it offers a clear, concise understanding of the property's worth at a given point in time.

In the context of real estate appraisals, this singular valuation is contrasted with other approaches, such as providing a range of values or comparing to similar properties. A range of values, for instance, indicates uncertainty or variability based on different factors, which is not the case with a point estimate. Similarly, written descriptions and comparative analyses serve different purposes in the appraisal process, providing context or supporting documentation but not representing the final valuation in a simple dollar amount. Therefore, the emphasis on a single dollar figure makes the point estimate a crucial concept in real estate appraisal.