Appraised value

An appraisal is a professional assessment of a property's value performed by a certified appraiser. When we say a property is "appraised," it means an independent expert has conducted a thorough evaluation to determine its fair market value.

The appraiser looks at several key factors:

• The property's physical condition and features
• Recent sales of comparable properties ("comps") in the area
• The size and layout of the home
• Location and neighborhood characteristics
• Any significant upgrades or improvements
• Current market conditions

Appraisals are particularly important in real estate transactions because lenders require them before approving a mortgage. The appraisal helps ensure that the loan amount doesn't exceed the property's actual value, protecting both the lender and the buyer. If a home appraises for less than the agreed-upon purchase price, it can affect the buyer's ability to secure financing, often leading to renegotiations or requiring the buyer to make up the difference in cash.

For sellers, knowing their home's appraised value helps them set a realistic listing price. For buyers, it provides confidence that they're paying a fair price for the property.