Market Value vs. Appraisal

The market value of your home and the appraisal can be very different.

Here’s why in a nutshell:

The market value is what a buyer is willing to pay for your home. This is determined by what the market will bear at any given time. This depends on inventory, desirability of an area, interest rates and other factors.

The appraised value is what a lending institution will loan you for the purchase of your home. This is determined by a licensed appraiser who bases the value on the condition of the home and similar homes that have already sold in the area.