What is Appraised Value?

It's an objective opinion of value, but it's not an exact science so appraisals may differ.

For buying purposes, appraisals are usually based on market value - what the property could probably b sold for.  Other types of value inlude 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.

Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of mortgage they will offer.  Most lenders also require that an appraisal be done, depending on the amount that is being borrowed.