What is Appraised Value?

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Mortgage and Lending with Imortgage NMLS 261647

What is Appriased Value?

 

  • Appraisals provide an objective opinion of value, but it's not an exact science so appraisals may differ.
  • For buying and selling purposes, appraisals are usually based on 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 market conditions can dramatically alter appraised value.
  • Appraised value doesn't 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.
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    Rainer
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    Billi Evans
    Murney Associates - Springfield, MO

    I'm sure it is just a coincidence, but the appraisals for the last two houses that I closed on recently  came in at exactly what the loan was for. Imagine.

    Aug 18, 2010 03:29 PM #1
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    Rainmaker
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    Kathryn Vatsula

    Professional Loan Consultant
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