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5,229,439
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Appraisal Value - One licensed appraiser's opinion of the value of a property.

Market Value - What a buyer is willing to pay for a property.

Feb 27, 2019 07:34 PM
Rainmaker
508,218
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Hopefully if everybody does their job correctly there should be little or no difference between them. But I will try to summarize.

Market Value is the amount that the public is willing to pay for a particular property. The amount could be determined by market analysis, specifics of the deal or by what the buyer is willing to pay (even if it is higher than appraised value).

Appraised Value is the amount a licensed apprasier has determined the property is worth. The appraiser may use a variety of sources or methods to arrive at an opinion of value.

Neither value is always correct, but some people will tell you that only market value should count. I disagree as there are certainly times when a buyer may be willing to pay more for a property than it is worth. If that happens they risk losing money is something bad should happen.

Feb 27, 2019 03:34 PM
Rainmaker
2,390,155
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

WOW, it really depends upon the market and the appraisor Andrew Cooper . In a perfect world they match up but most of the time they are withi-in a couple of percentage points in my market area. Here is a typical cartoon on the subject.

As Seen By

 

Feb 27, 2019 07:26 PM
Rainmaker
7,835,323
Roy Kelley
Retired - Gaithersburg, MD

Try Google...

 

Feb 27, 2019 04:12 PM
Ambassador
6,392,929
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Always good when these numbers are close to each other.

Feb 27, 2019 06:15 PM
Rainmaker
1,052,176
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Market value = buyer's and seller's opinion of value, if they coincide

Appraised value = appraiser's opinion of value

Feb 27, 2019 05:00 PM
Rainmaker
1,502,898
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

This one is pretty easy to explain.

Market value: What a willing and able buyer and seller agree to transfer a property for.

Appraiseal value:  What a neutral third party, hired by the buyer on behalf of the lender, says the property is worth.  There are a few way they can do this.  1) The most common one (which we use as well) is the comperable sales approach.  2) The second one is replacement value... basically what would it cost to rebuild the structure + the value of the land. 

 

There are other methods as well. 

 

I don't think I've ever seen anything other than the comperable approach used in traditional residential tract homes.

Feb 27, 2019 09:21 PM
Rainer
187,002
Raj Taj
RE/MAX - Lake Bluff, IL
Drive By Blessings!

"It's hard to deny the gift 🎁 of perfect love! 💘"

Feb 27, 2019 04:40 PM
Rainmaker
1,196,588
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

You have received the answer you need

Feb 28, 2019 05:13 AM
Rainmaker
1,153,794
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

It's the difference between what an expert says it's worth and what a buyer is willing to pay for it at this particular point in time.

Feb 28, 2019 03:00 AM
Ambassador
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I echo Debe Maxwell, CRS comment. 

Feb 27, 2019 08:01 PM
Ambassador
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

There are some good answers here - not sure I can add anything!

Feb 27, 2019 05:07 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Roy Kelley gave a good answer....

Feb 27, 2019 05:01 PM
Rainmaker
2,781,123
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

One is an opinion of value and the other is the value based on ready, willing and able participants

Feb 27, 2019 04:40 PM
Rainmaker
1,197,042
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Both wildly misunderstood numbers..  market is what a buyer and seller agree upon and appraisal is required by a bank

Feb 28, 2019 04:08 AM
Rainmaker
628,764
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Appraisal ~ Is the paid opinion of a licensed professional

Market value ~ Is what a willing and able Buyer & Seller are willing to transfer a property for.

Feb 28, 2019 04:06 AM
Rainmaker
2,240,975
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The appraised value reflects the last six months to a year and could be from an income approach, cost to reproduce build from scratch, from a market approach to what's it worth. The market value with a sale of a low or no supply of say waterfront properties can over night change. Supply and demand can make the what you think it is worth spike overnight with multiple buyer situations. With just 3 cash sales your appraiser suddenly has some new comps to hoist the "sales", to hook to to raise the ceiling. That new valuation comes directly from what the buyer believes the listing is worth. Not the crew cut appraiser with the pen protector and aluminum clipboard. My dad was a licensed appraiser and an economics major... there is a science to valuation. 

Feb 28, 2019 03:59 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

Appraisal value is the value a licensed appraiser places on the property, typically used by a lender to minimize their risk.

Market value is the value a buyer is willing to pay and a seller is willing to accept.

Feb 28, 2019 03:08 AM
Rainmaker
1,311,367
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Appraisal value is just what it sounds like: the value placed on the property by an appraiser.

Market value is what a buyer is willing to pay for the property.

Feb 27, 2019 08:38 PM
Rainer
352,976
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

Roy Kelley hit the target 🎯 on the response.  

Feb 27, 2019 07:37 PM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

There are many different answers, but having sone appraisals for decades as well as selling homes... The appraisal in most cases is for the bank to confirm the sales price is or is not at market value. It is why most appraials come out at teh sales price. THE TRUE MARKET VALUE is what someone is willing to pay for a home. 

Feb 28, 2019 05:04 AM
Rainmaker
851,242
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

GREAT question!  I can't provide anything more than you already have from those who responded. 

Feb 28, 2019 04:31 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

What Joseph Domino 480-390-6011 said.

Feb 28, 2019 03:26 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

When ordering an appraisal, the professional will ask clarification regarding the PURPOSE of the appraisal. A clue.

The appraiser has criteria regarding comparative sales  that differ from lender to lender. Another clue.

Appraisers stop adding when their calculated value exceeds the PURPOSE by a predetermined amount. And yet another clue.

The appraised value, like all data, is meaningless without interpretation.

The value of a house is determined by what a willing seller and able buyer agree to. IT is not and should not be what the bank wants to pay....aka: appraisal.

See Kenneth J. Jones 

Feb 28, 2019 04:44 AM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good luck with your studies.

Feb 28, 2019 12:33 PM
Rainer
509,449
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

Appraised value is from the lender's appraiser. 

Market value is what your buyer is willing to pay and seller is willing to take.  As agents, we run comps but eventually it's up to the buyer how much he/she is willing to pay.  In a hot seller's market, the market value is often inflated and sellers often ask that buyer will pay the difference if the house does not appraise.

Feb 28, 2019 09:11 AM
Ambassador
2,178,533
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Appraisal value is very objective, based on actual sales history.  Market value is much more subjective.

Feb 28, 2019 08:28 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Andrew,

You have good answers.  A

Feb 28, 2019 07:48 AM
Rainmaker
2,182,502
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Market Value is the Price it actually Sells For 

Feb 28, 2019 07:21 AM
Ambassador
1,452,669
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

Some day the US will catch up to Canada   We did away with the high majority of appraisals many many moons ago because they were found to be inaccurate opinions of one person.  We instead, chose to go the route of instant market value estimates based on property attributes, comprehensive data integrations and machine learning algorithms. The results are communicated within 4 seconds.  No more opinion based appraisals!

Feb 28, 2019 07:12 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

In a perfect world, these would be the same.  The market value is often different because of the perception of the buyer as to worth and on occasion appraisers can be wrong.

Feb 28, 2019 06:52 AM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

It's in the book.

Feb 28, 2019 05:51 AM
Rainmaker
1,543,602
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Appraisal is what the lender is willing to risk.

Market Value is what the public (market) is willing to pay.

Feb 28, 2019 07:08 PM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Andrew Cooper I will be covering this topic in pre-license class this weekend.  Please feel free to drop in.  Alan Kells School of Real Estate.

Feb 28, 2019 02:58 PM
Rainmaker
1,239,801
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

AVM vs man selected value.

Feb 28, 2019 10:03 AM
Rainmaker
5,868,372
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debe has the perfect response.

Mar 09, 2019 10:42 AM
Rainmaker
5,216,353
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

What can I say that Debe Maxwell, CRS has not said!

Mar 04, 2019 04:24 AM
Rainmaker
4,935,567
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Debe Maxwell nailed it again!!!

 

Mar 03, 2019 08:54 AM
Rainmaker
900,118
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Appraisal value = estimate

Market value = real, what someone actually paid 

Mar 01, 2019 10:25 AM