Kim Zolciak's Georgia Mansion Appraised for $5.5M, Source Says, as Price Drops to $3.95M (Exclusive)

"I can’t imagine it’ll be on the market that much longer," the insider told PEOPLE of Zolciak and ex Kroy Biermann's Alpharetta home, first listed in Oct. 2023

Kim Zolciak and her ex Kroy Biermann’s Georgia home is worth much more than its asking price, a source tells PEOPLE.

The Bravo star, 46, and the former NFL linebacker, 38, first listed their sprawling seven-bedroom mansion in October 2023 and have since slashed the prices numerous times. Now, a source familiar with the property says the home has been appraised for $5.5 million — far above its current $3.95 million price tag.

"It’s an incredible deal for a house that size in a neighborhood that beautiful,” the source tells PEOPLE. "I can’t imagine it’ll be on the market that much longer."

Zolciak and Biermann initially listed their property for $6 million amid their split. According to a listing on Zillow, the brick and stone estate sits on 1.78 acres and includes a six-car garage, billiard and arcade rooms, a gym with a private massage room, a 500-bottle walk-in wine cellar, a heated pool, and a home theater.

The two reduced the asking price of the home to $5.5 million in December 2023 and again, to $4.5 million, in January 2024.

Zolciak and Biermann purchased the home in 2012, a year after they got married. They lived there with their children: Kroy "KJ" Jagger Jr., 13, Kash, 12, and twins Kaia Rose and Kane Ren, 10. Zolciak also has two older daughters from a previous relationship, Brielle, 27, and Ariana, 22, whom Biermann legally adopted.

News of the listing came roughly two months after Biermann filed for divorce from Zolciak. The pair had previously filed to legally dissolve their 12-year union in May, then decided not to split in July in an attempt to reconcile.

The home made headlines earlier in 2023 when a notice shared by Fulton County stated that the home was facing foreclosure after the ex-couple defaulted on a loan they took out in October 2012. The notice stated their bank lender would be putting the property up for public auction.

A source told PEOPLE at the time that Zolciak was "telling everyone this is a misunderstanding and is being sorted out." Although the issue was later resolved, an insider shared with PEOPLE that financial woes had been an issue in their relationship.

In June 2023, court documents obtained by PEOPLE, stated that the lender had agreed to cease foreclosure for the next 90 days, so the former couple could try to sell the home without it being foreclosed on.

Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer​​, from juicy celebrity news to compelling human interest stories.

The Real Housewives of Atlanta alum recently told PEOPLE that her new reality TV show Surreal Life: Villa of Secrets helped her clear her mind during her divorce.

"The Surreal Life was one of the most incredible experiences in my life," she said. "My goal going on the show — which I've never watched an episode of in real life, and I intentionally didn't watch any when I decided to join the show because I didn't want to have any inhibitions — [was that I] needed some time away from the actual house to gain some clarity going through this divorce and focus more back on Kim."