Generally speaking, mortgage lenders will request an appraisal to obtain a detailed understanding of the property based on overall condition, conformity to the area, and market value. The appraisal report is used to assist the lender in its lending decision.
Ideally, appraised values and assessed values would be identical. That’s rarely the case, mainly because the processes involved in each are so different from one another. Whereas an assessment is an educated guess, an appraisal is an informed, comprehensive calculation.
As a prospective or current homeowner, ensure that you know both of these figures. If its assessed value is higher than its appraised, you may have a case for paying less in property taxes to your municipality.
For more information on any aspect of the homebuying process, contact your Guild Loan Officer. We’ll guide you home.