Real Estate Term
Appraisal
A professional assessment of a property's market value, typically required by lenders before approving a mortgage.
What is Appraisal?
An appraisal is an independent, professional estimate of a property's market value, usually ordered by a lender before it approves a mortgage. The appraiser inspects the home and compares it to recent sales of similar properties to arrive at a supportable value. If the appraisal comes in below the agreed purchase price, the lender may only finance the lower amount, and the buyer must cover the difference or renegotiate.
Frequently asked questions
Related terms
Fair Market ValueThe price a property would sell for in a competitive market with willing buyers and sellers.AssessmentThe value placed on a property by a municipality for tax purposes.Comparative Market Analysis (CMA)An analysis of recently sold properties similar to the subject property, used to determine market value.Down PaymentThe portion of the purchase price paid upfront by the buyer, typically expressed as a percentage.MortgageA loan used to purchase real estate, with the property serving as collateral.ListingA property that is available for sale, marketed through a real estate brokerage.
Ready to put this into practice?
Start your property search or connect with a local Sutton agent who can guide you through every step.