Appraisal and Valuation

An appraisal is a professional valuation of a property used to help a lender judge whether the collateral supports the mortgage.

Mortgage appraisal and valuation terms that explain how lenders judge property value, compare sales, and handle valuation gaps.

An appraisal gap is the difference between the agreed purchase price and the lower value supported by the appraisal.

Appraised value is the property's value conclusion as stated in the appraisal report.

Assessed value is the value assigned to a property for property-tax purposes by the local taxing authority.

Comparable sales, or comps, are similar recent property sales used to help support a home's valuation.

A desktop appraisal is a valuation approach completed without a traditional full interior property visit.

A hybrid appraisal is a valuation format in which property-inspection work and appraiser analysis are split into separate roles.

Market value is the price a property would likely command in an open market under typical conditions.

Reconsideration of value is the process of asking for review of an appraisal when the borrower or lender believes the valuation may need adjustment.