What determines a home's appraised value?

A home's appraised value rests mainly on recent sales of comparable homes, which should be within about a mile of the property, in similar condition, and close in age, square footage, and number of rooms. Appraisers also weigh the home's condition, recent renovations or improvements, amenities, size, and location, along with current market activity and trends in the area. The appraised value is an unbiased opinion and may differ from the sales price or the tax-assessed value.