What is Appraised Value?
 
  • Appraisals provide an objective opinion of value, but itís not an exact science so appraisals may differ.
  • For buying and selling purposes, appraisals are usually based on market value ó what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
  • Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value.
  • Appraised value doesnít take into account special considerations, like the need to sell rapidly.
  • Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.