What is difference between appraised value and market value?

Appraised value vs. market value. In review, the appraised value is a price assigned to a property by a licensed and certified real estate appraiser, while the market value is the price that buyers are willing to pay for it on the real estate market.

Introduction

Real estate market value is the amount of money that a property is worth in the current market. It is determined by a variety of factors, including location, condition, size, and amenities. Understanding the market value of a property can help buyers and sellers make informed decisions when buying or selling a home.

Factors Affecting

Location

The location of a property is one of the most important factors in determining its market value. Properties located in desirable areas with access to amenities such as schools, shopping, and public transportation tend to have higher market values than those in less desirable locations.

Condition

The condition of a property is also an important factor in determining its market value. Properties in good condition tend to have higher market values than those in need of repairs. Buyers may be willing to pay more for a property that is move-in ready, while sellers may need to adjust their asking price for a property that needs repairs.

Size

The size of a property is also a factor in determining its market value. Generally, larger properties tend to have higher market values than smaller properties, as they offer more living space and potential for expansion.

Amenities

The amenities offered by a property can also affect its market value. Properties with features such as pools, patios, or garages may have higher market values than those without these features.

FAQs

What is real estate market value?

Real estate market value is the amount of money that a property is worth in the current market.

What factors affect real estate market value?

The factors that affect real estate market value include location, condition, size, and amenities.

What is the difference between appraised value and market value?

Appraised value is an estimate of the fair market value of a property based on an appraisal by a professional appraiser. Market value is the amount of money that a property is actually worth in the current market, and can be higher or lower than the appraised value.

Conclusion

Real estate market value is an important factor to consider when buying or selling a home. It is determined by a variety of factors, including location, condition, size, and amenities. Understanding the market value of a property can help buyers and sellers make informed decisions when buying or selling a home.