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Understanding Property Appraisals — And How Lendworth Adds a Liquidity Lens to Valuation

In the world of mortgage lending, determining a property’s value is one of the most critical components of the underwriting process.

At Lendworth, we go beyond the traditional appraisal to ensure our valuations reflect not just theoretical worth, but real-world liquidity — the ability to sell a property efficiently in today’s market.

What Is an Appraisal?

A property appraisal is a formal assessment of a home’s market value, typically conducted by a certified appraiser. It’s often required by banks, lenders, and regulatory bodies to validate the security behind a mortgage loan.

The appraiser considers:

  • Comparable sales (recent sales of similar homes)
  • Location and neighborhood trends
  • Lot size, building condition, and upgrades
  • Zoning, permits, and legal conformity

The final report provides a market value estimate — a snapshot based on historical data and current market conditions.

Why Appraisals Are Only Part of the Story

While appraisals are an important starting point, they don’t always tell the full story — especially in a shifting market. An appraised value may appear solid on paper, but the property could take months to sell due to limited buyer demand, location-specific issues, or oversupply.

This is where Lendworth’s approach differs.

Lendworth’s Proprietary Liquidity-Based Valuation Model

At Lendworth, we don’t rely solely on third-party appraisals. We apply our proprietary valuation model that factors in market liquidity — the realistic ability to sell the asset within a defined timeframe, typically 30 to 45 days, without significant price erosion.

We assess:

  • Neighbourhood turnover velocity – How quickly comparable homes are selling in the area
  • Listing-to-sale ratios – Are listings converting to sales at or below asking price?
  • Demographic and investor demand – Is the area attractive to renters, end-users, or investors?
  • Price resilience – Would the property hold value in a slower or distressed market?

By blending traditional appraisal data with our internal liquidity analysis, we create a real-world valuation that better reflects the property's role as collateral.

Why This Matters to Borrowers and Investors

For borrowers, our method means faster approvals and clarity on how much financing we can offer. For investors in Lendworth Mortgage Investment Corporation, it means better risk management and stronger asset security — even if market conditions soften.

Final Thoughts

Appraisals will always be a part of responsible lending. But in today’s environment, valuation requires more than spreadsheets and comparables — it requires market insight and liquidity awareness. At Lendworth, our commitment is to make sound lending decisions by combining traditional due diligence with forward-looking valuation practices that protect capital and maintain portfolio quality.

Because at Lendworth, it’s not just about what a property is worth — it’s about what it can sell for, when it matters most.

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