Appraised value
The value the appraiser puts on the home in the report. Lenders base the loan on the lower of this number and the purchase price.
Also called: appraisal value, appraised price
Related terms
A licensed appraiser's professional opinion of what a home is worth. Lenders require one to make sure the home supports the loan amount.
The price a home actually sells for at closing. It can differ from the list price and becomes public record in most states.
The price a home would likely sell for between a willing buyer and seller, both informed and not under pressure. Appraisals and CMAs both try to estimate it.
When the appraised value comes in below the contract price. The buyer may need to bring more cash, renegotiate, challenge the value, or use an appraisal contingency to exit.
The loan amount divided by the property's value or price, whichever is lower, as a percentage. Lower LTV means less risk for the lender and often better pricing; above 80% usually triggers mortgage insurance on conventional loans.