Appraised Value

Business, Legal & Accounting Glossary

Definition: Appraised Value

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Appraised Value. Payroll & Accounting Heaven Ltd.
January 26, 2022
Chicago Manual of Style (CMS):
Appraised Value. Payroll & Accounting Heaven Ltd. (accessed: January 26, 2022).
American Psychological Association (APA):
Appraised Value. Retrieved January 26, 2022
, from website:

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.