What does the term "appraised value" refer to?

The term "appraised value" refers specifically to the value established by a professional appraiser. This value is determined through a systematic process of evaluating the property and considering various factors, including the condition of the property, recent sales of comparable properties, and market trends. The appraiser assesses these elements to arrive at a fair market value, which is intended to represent what the property is worth at that point in time in the context of current real estate market conditions.

Understanding the role of the appraiser is crucial. Appraisers are typically certified professionals with expertise in real estate valuation and are impartial parties who provide objective assessments to support loan underwriting, property sales, and various other real estate transactions.

Other terms, such as "tax assessment value" or "historical cost," may refer to different evaluations that do not carry the same level of professional analysis. The buyer's willingness to pay can influence the sale price, but it does not constitute the appraised value determined through a formal appraisal process. This distinction is essential for real estate professionals to ensure accurate valuations during transactions.