What Is Appraised Value?
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.
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