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What Does Appraised Value Mean?
An appraisal is not and exact science. It is an objective opinion of value, One appraisal may be considerably different from another. In the current more challenging market, this is more true than ever. And in an area such as Monterey Peninsula with very diverse homes it is harder to find comparable properties.
For the purposes of selling or buying, appraisals are commonly based on market value. This is what the property would most likely sell for. There are other types of value - these might include replacement value, property tax assessed value and a value for insurance purposes.
Appraised value is not a static number. Market condition changes can radically alter appraised value.
Appraised value doesn't take into account considerations such as the need to sell fast!
Lenders commonly use either the appraised value or the sale price, whichever is lower , to determine the mortgage amount they offer.
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