The appraised value is an unbiased assessment of a property’s worth, though it’s not an exact science, leading to potential variations in appraisals. Typically rooted in market value—what the property could fetch in a sale—it contrasts with other valuations like insurance, replacement, or assessed value for tax purposes.
It’s crucial to note that appraised value isn’t fixed; shifts in market conditions can significantly impact it. Special considerations, such as the urgency to sell, aren’t factored in.
In real estate transactions, lenders often rely on either the appraised value or the sale price, choosing the lesser of the two, to determine the mortgage amount they’ll offer.
