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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.

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.

What is appraised value in real estate?

Appraised value is a property’s market value determined by a licensed, objective real estate appraiser. The appraiser considers multiple factors, including the structure and property itself, plus nearby listings or recent sales.

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