Appraised Value
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.
What it is
The appraised value is a licensed appraiser's estimate of what a home is worth. Lenders base your loan on it, not just the price you offer.
It protects you from overpaying.
Why it matters
If the appraisal comes in low, you may need to renegotiate or add cash. A strong value keeps the deal on track.
We help you handle appraisal results. Apply now and we will guide you through any gap.
Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.