Appraised Value Vs. Market Value

There’s a long list of variables to wade through when buying or selling a home. One of the biggest and most important, however, is pricing. For a seller, figuring out the right price tag for your home could make or break the speed of your sale. For a buyer, offering too low can kill a deal before it even begins. When it comes to pricing, something that many buyers and sellers struggle to understand is the difference between the appraised value of their home vs market value. Below are the differences between the two.

Appraised value

“The appraised value of a home determines the exact value number of the property. This value is based on a variety of data, gathered by a professional appraiser, trained to provide the estimated value of a home.” The appraised value is based on comparable sales, the condition of the property, and several other factors.

Market value

“The market value will vary more than your appraised value. This is because unlike the appraised value, buyers have influence over the market value of a property. Why? Because ultimately, a property is only worth what someone will pay for it. So in short, the market value is the price the house will bring at a given point in time, once the buyer and seller establish a “meeting of the minds” on price.  

Conclusion

The main thing to remember about the difference between the two is while appraised values are driven by experts.  If you are looking to find the value of your home, click here.  To learn more about Mike Cribbin click here.