AppraisalsHomebuying Glossary
Appraised Value
The dollar value a licensed appraiser assigns to a home after evaluating it.
In plain English
Appraised value is the specific number an appraiser determines a home is worth, based on its condition and comparable recent sales — used by lenders to confirm the loan amount is appropriate for the collateral.
Why it matters
Your loan-to-value ratio is calculated using the lower of your purchase price or appraised value, which is why an appraisal gap matters so much.
Where you'll run into it
Guides and tools on TheBuyingPath that cover appraised value in context.
Related terms
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