In real estate, what does appraised value refer to?

Appraised value is defined as the estimated market value of a property determined by a professional appraiser. This appraisal process involves a thorough analysis of various factors, including the property's condition, location, comparable property sales, and current market trends. Appraisers follow standards and methodologies to ensure their assessments are objective and credible.

Professional appraisers are trained to provide unbiased evaluations based on extensive knowledge and expertise in the real estate market. This makes appraised value a critical component in various real estate transactions, such as securing financing, establishing a sale price, or setting property taxes.

On the other hand, the maximum price a buyer is willing to pay can vary based on individual circumstances and emotions, and it may or may not align with the appraised value. The actual sale price is the final amount agreed upon between the buyer and seller, which can be influenced by negotiations and market conditions. Lastly, the value determined by the local tax assessor typically reflects a property’s assessed value for tax purposes, which may differ from the appraised value that reflects current market conditions.