Appraisals
provide an objective opinion of value, but it’s not an exact science so
appraisals may differ.
For
buying and selling purposes, appraisals are usually based on market value —
what the property could probably be sold for. Other types of value include
insurance value, replacement value, and assessed value for property tax
purposes.
Appraised
value is not a constant number. Changes in market conditions can dramatically
alter appraised value.
Appraised
value doesn’t take into account special considerations, like the need to sell
rapidly.
Lenders
usually use either the appraised value or the sale price, whichever is less, to
determine the amount of the mortgage they will offer.
Fred Yancy, Realtors LLC 225 Creekstone Ridge, Woodstock, GA 30188 (678) 922-2463
www.FredYancy.com
Used
with permission from Kim Daugherty, Real Estate Checklists and Systems,
www.realestatechecklists.com