Posted in Finance, Accounting and Economics Terms, Total Reads: 240
Definition: Appraised Value
It is an attempt by a professional appraiser to ascertain the exact market price of a property. Various factors like size, type of construction, location, condition, and recent sales of comparable property in the vicinity are kept in consideration before ascertaining the value.
For Example during mortgage origination process an appraiser usually chosen by the lender and paid for by the borrower will attempt to determine the market value of a property. Based on the appraised value, amount of money that may be borrowed and terms of loan is determined.
Please note that appraised value is different from assessed value. Assessed value is the amount that a local or a state government has specified for a particular property. It is used when property tax is levied by the government.