What is the difference between market value and appraisal value?

Well, there are two major valuations you’ll need to know: the home’s market value and the home’s appraised value. The main difference between a home’s market value and appraisal value is who determines it: market values are decided by buyers and sellers, while appraisal values are calculated by licensed appraisers.

What is an appraised value?

An appraised value is an estimate of a property’s worth by a licensed appraiser. To determine their valuation, they typically conduct a home appraisal, where they evaluate the home’s condition and features. They will then conduct a market analysis before completing their appraisal report.

Does appraised value affect market value?

Buyers determine this value, and the home’s appraised value or tax assessment value has no bearing on what buyers are willing to pay in an open market. “Appraised and market value are intimately intertwined. Appraisal value is primarily for the lender to determine how much credit to extend, but generally does coincide with the current market value.