Who typically determines the appraised value of a property?

The appraised value of a property is typically determined by a qualified appraiser. This professional is trained and licensed to evaluate the various factors affecting a property's value, including its location, amenities, condition, and recent market trends. The appraiser utilizes standardized methodologies and comparative market analysis to arrive at an objective assessment, which is crucial for various stakeholders in a real estate transaction, including lenders, buyers, and sellers.

Having an unbiased third-party appraiser ensures that the property's valuation reflects its true market value, which helps in securing financing, making informed buying decisions, and setting appropriate listing prices. While sellers and agents may have their perspectives on a property's value, their assessments may be influenced by personal interests or marketing strategies, which can lead to discrepancies with the market reality. Similarly, a buyer's financial institution will rely on an independent appraisal rather than setting the value themselves to mitigate risks associated with lending. Thus, the role of a qualified appraiser is essential for maintaining fairness and transparency in real estate transactions.