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Appraised value

The value the appraiser assigns to the home in their report. If it's less than the sale price, the lender will only lend against the lower number.

Inspections & appraisals · Updated September 2026

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Where this comes up: under contract

This word belongs to the under contract part of a sale. Here is what that part holds, in order.

  1. Go under contractSign the purchase agreement · Confirm earnest money is deposited
  2. Buyer's inspectionCoordinate access for the inspector · Give the inspector clear access
  3. Title workOpen title with your closing team · Review the title commitment
  4. Settle repairsDecide what you'll fix and what you'll credit · Collect contractor quotes

Your Room keeps this list for your own sale, with your dates on it.

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Part 1 of 4

Why a seller cares

The appraised value is the number the lender uses for everything: the loan amount, the LTV, whether PMI applies. It is one opinion on one day, and in a financed sale it carries more weight than the price.

Part 2 of 4

A simple example

Your home appraises at $305,000 on a $300,000 contract. The lender lends against $300,000, the lower of the two, and the extra $5,000 changes nothing.

Appraised value: a simple example
Appraised value against the priceWhat the lender does
Above the priceLends against the price; the extra is the buyer's equity
Equal to the priceLends as planned
Below the priceLends against the appraisal; the difference is the gap

The lender always uses the lower of price and appraised value.

Part 3 of 4

What people get wrong

That an appraisal above the price raises what you get. The price is the contract; the appraisal only limits the loan.

Part 4 of 4 · where to read next

Where it appears in the sale

What happens after you accept an offerUnder contract · the stretch of the sale this word belongs to

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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