Appraisal is a licensed appraiser's independent estimate of a property's market value, ordered by the lender and used as the collateral basis for the loan amount. Most investor loans use the URAR (Uniform Residential Appraisal Report) form; some use the BPO (Broker Price Opinion) for lower-leverage or no-appraisal programs.
The appraiser pulls comparable recently-sold properties ("comps"), adjusts for property differences, and concludes a value. For fix-and-flip and new construction, the appraisal is typically After Repair Value (ARV) — the value assuming the rehab is complete.
Appraisals can be re-pulled if the file sits open too long or comp data updates materially. A pulled appraisal value voids the CTC-tier leverage and forces a re-underwrite.