Definition
An expert’s estimate of a property’s value, often required by lenders before approving a mortgage or refinance.
What to consider
- Consider whether steady, predictable income fits your retirement needs.
- Compare it with other investment options to see what works best for you.
- Look into any fees or penalties before signing up.
Real world scenarios
- Nina orders an appraisal before closing on her first home. The report confirms the selling price is fair based on the neighborhood and property condition.
- A low appraisal prompts Aaron to renegotiate the purchase price or walk away to avoid overpaying.
- Jordan checks the current appraisal on his house to see if refinancing might lower his monthly mortgage costs.
Related terms
Related Playbooks
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Real Estate & Homeownership
Quick Guide to Accurate Property Values: Real Estate & Vehicle Worth Calculator
