What Is an Appraised Value?
An appraised value is a benchmark used by authorities and banks for taxes, fees, and lending decisions—not a guaranteed selling price.
In Thailand, transfer-related appraisals reference the Land Department and are updated periodically using historical data.
Appraisal ≠ Market Price ≠ Owner Expectation
Appraisal: conservative, backward-looking
Market price: current demand and supply
Owner expectation: emotional or cost-based
Buyers focus on achievable closing prices.
Why Buyers Rely on Appraisals
Loan amounts depend on the lower of purchase price or appraisal
Any premium above appraisal requires cash
Appraisals cap downside risk
Hence, many buyers anchor offers near appraised values.
How Banks Think
Banks value properties to protect lending risk, considering location, condition, comparable sales, and resale feasibility under foreclosure.
Does a Low Appraisal Mean Low Value?
No. Appraisals are safety benchmarks, not ceilings. Strong demand and good condition can justify prices above appraisal.
Why Accepting Appraisal-Level Pricing Can Work
Faster financing approval
Shorter selling time
Lower interest and holding costs
Reduced legal risk
Net outcomes can be better than holding out for higher prices.
Auctions vs Appraisals
Auctions don’t force appraisal pricing. They reveal true market acceptance—above or below appraisal—through competition.
FAQ – Property Inspection & Auction
Q1: Is it necessary to sell a property strictly at the appraised value?
A: No. However, the appraised value is the baseline that buyers and banks use to assess risk.
Q2: Can a property be priced higher than the appraised value?
A: Yes, if the property has strong demand and the buyer has sufficient cash to cover the difference.
Q3: Why is the appraised value sometimes lower than expected?
A: This is often due to the use of historical data, the condition of the property, or local demand at the time of appraisal.
Q4: Do cash buyers think differently from buyers who use bank financing?
A: Yes. Cash buyers are generally more flexible, but they still consider resale value.
Q5: How does an auction help overcome appraisal price limitations?
A: It allows buyers to compete in real market conditions, revealing the maximum price the market is willing to accept.
