A home’s market value is the price that a willing buyer and seller agree upon in an open market transaction. It’s the amount of money a property is worth based on the current real estate market trends, local supply and demand, and other factors such as location, size, condition, and amenities.
On the other hand, an appraised value is an evaluation of a property’s worth by a licensed appraiser. The appraiser will analyze the home’s condition, features, and comparable sales data to determine its appraised value. An appraiser typically considers the age of the home, its square footage, the number of bedrooms and bathrooms, and the overall condition of the property. They also look at recent sales of comparable properties in the same neighborhood.
While both the market value and appraised value aim to estimate the value of a property, the main difference is that the market value is the price the home sells for, while the appraised value is an estimate of what the property is worth. Appraisals are often required by lenders when a borrower is obtaining a mortgage to purchase a home, while market value is more relevant when a homeowner is looking to sell their property.
So in short, the market value is the price a buyer is willing to pay for a property, and the appraised value is an appraiser’s professional opinion.
Have you been curious about what your home is worth? To find out, check out the link HERE and we’d be happy to provide you with a free comparative home analysis report!