Appraised Value

Business, Legal & Accounting Glossary

Definition: Appraised Value




Full Definition of Appraised Value


Appraised value. When you apply for a mortgage loan, the loan originator will usually arrange for an appraisal to determine the fair market value of the property.

The appraisal is carried out by a professional appraiser, usually one experienced in valuing real estate in the area. He uses comparisons, sometimes called comps as the basis for the estimate. The comps give him recent purchase prices of similar properties in the area. He then applies standard adjustments for differences like square footage, the number of bathrooms, etc., to arrive at an official appraised value.

The appraised value can be a critical factor in determining how much can be borrowed on a property. If the sales price is far higher than the appraised value, the mortgage loan may not be approved.

The appraised value differs from the assessed value in that the assessor tends to be more mathematical often based on the square footage of spaces rather than considering materials of construction, etc.


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Appraised Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 25, 2021 https://payrollheaven.com/define/appraised-value/.
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Appraised Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/appraised-value/ (accessed: September 25, 2021).
American Psychological Association (APA):
Appraised Value. PayrollHeaven.com. Retrieved September 25, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/appraised-value/

Definition Sources


Definitions for Appraised Value are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th August, 2021 | 0 Views.