What Is Appraised Value?

Real Estate Agent with Russell and Jeffcoat

It’s 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 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.

Comments (3)

Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

In my world they are using appraised value. Haven't had issues unless appraisal comes in a lot less the sales contract.

Jan 06, 2012 01:08 PM
Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

The new appraisal guidelines are kicking us in the rear. Getting an appraiser assigned at random from out of the area is a big problem, They use comps based solely on square footage number of bed and bathrooms distance to subject and closing date. They have never been to the comps or even driven to the area of the comp. We end up getting a home in great shape in a good location compered and given the same value has a run down home that is in a bad location just because of the homes look similar on paper. No difference in value for flooring in great shape for carpet that has dogs and cats using the bathroom on them for years. No difference for a new roof verses a wore out leaking roof. No difference for custom cabinets with granite count tops verses the cheapest out of the box cabinets with laminate tops. The list goes on.

Now appraised value is just luck of the draw on which appraiser you get. I have seen two appraisers appraise the same house in the same condition less than 30 days from each other and the value vary 30%.


Jan 06, 2012 02:02 PM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Dave

Thank you for the clarification. Very important for buyers and sellers to know and understand. Have a great day

Jan 06, 2012 02:12 PM