What is Appraised Value?
· Appraisals provide an objective opinion of value; however it is not an exact science so appraisals may differ.
· For buying and selling purposes, appraisals are based on market value — what the property could probably be sold for within a typical marketing period.. 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 alter appraised value.
· Appraised value doesn’t take into account special considerations, like the need to sell rapidly.
· Appraised values are not the same as marketing or list price but in some cases they can be.
· Appraised values typically do not include personal property, such as boats, cars etc.
· Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.
Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.com