Mortgage Glossary
Appraised Value
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Appraised value is a licensed appraiser's professional opinion of a home's market value, used by lenders to set the maximum loan amount.
What Appraised Value means
Lenders base the loan on the lower of the purchase price or appraised value. A low appraisal can force the buyer to renegotiate, pay the gap in cash, or walk away. The appraisal protects the lender from over-lending on the collateral.
Florida example
A Cape Coral home under contract at $325,000 appraised at $310,000, so the buyer renegotiated the price down to match the appraised value rather than cover the $15,000 difference.
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