A property’s appraised value is the estimated true or fair market value of a home following an unbiased appraisal and estimate. The value is based on a time that a professional appraisal was performed as part of the mortgage origination process.
The appraised value is used when a loan provider is evaluating the exact amount that a borrower is worth. This is one of the factors that would determine if the borrower is qualified for a private mortgage or not and under what terms the mortgage will be under.
Why get an appraised value?
Most homeowners have their properties appraised for the purpose of mortgage applications. However, other property owners get an appraisal to prove that their estate has gained higher value since its initial assessment. Moreover, the appraised value of a property directly affects the worth of the said estate after it has been refinanced.
Factors Identified during an Appraisal
There are several things that are considered when a home is being appraised.
- The location of the property is perhaps one of the biggest things considered. Urban properties have a higher value compared to rural ones.
- The size of a property also matters. The bigger the size the higher the sale/purchase price.
- The materials used in the construction also have an influence in the assessment. These are factored in along with the age of a property.
Overall, an appraised value is the estimated amount of a property after a thorough review.