Terminology Tip: Appraisal Value

PhotoA property’s fair market value as estimated by a certified appraiser. The appraiser’s estimate is based primarily on comparable sales, but also takes into account the condition of the property, current market conditions and other factors. An appraisal value is an important factor in determining how much money may be borrowed for a home loan. The appraiser is typically selected by the lender, while the appraisal is generally paid for by the borrower.