What Is Appraised Value ?

It’s an objective opinion of the value of the home, but it’s not an exact science so appraisals may differ.

For real estate buying and selling purposes, appraisals are usually based on the homes market value—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 real estate market conditions can dramatically alter appraised value of your house.

Appraised value doesn’t consider 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.