5,229,439
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.
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Mary Yonkers
Erie, PA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Kris Collis, Associate...
East Stroudsburg, PA
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Ron and Alexandra Seigel
Carpinteria, CA
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Raj Taj
Lake Bluff, IL
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Kathleen Daniels, Prob...
San Jose, CA
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Joseph Domino 480-390-...
Scottsdale, AZ
-
Teri Pacitto
Westlake Village, CA
508,218
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.
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Mary Yonkers
Erie, PA
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Kris Collis, Associate...
East Stroudsburg, PA
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Ron and Alexandra Seigel
Carpinteria, CA
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Doug Dawes
Topsfield, MA
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Andrew Mooers | 207.53...
Houlton, ME
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Nina Hollander, Broker
Charlotte, NC
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Teri Pacitto
Westlake Village, CA
-
Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Roy Kelley
Gaithersburg, MD
-
Jeff Dowler, CRS
Carlsbad, CA
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Candice A. Donofrio
Fort Mohave, AZ
-
Silvia Dukes PA, Broke...
Spring Hill, FL
2,390,155
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.
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Mary Yonkers
Erie, PA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Carol Williams
Wenatchee, WA
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Doug Dawes
Topsfield, MA
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Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
-
Raj Taj
Lake Bluff, IL
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Teri Pacitto
Westlake Village, CA
-
Debe Maxwell, CRS
Charlotte, NC
7,835,323
Try Google...
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Mary Yonkers
Erie, PA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
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Joseph Domino 480-390-...
Scottsdale, AZ
-
Teri Pacitto
Westlake Village, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Raj Taj
Lake Bluff, IL
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Barbara Todaro
Franklin, MA
6,392,929
Always good when these numbers are close to each other.
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Mary Yonkers
Erie, PA
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Doug Dawes
Topsfield, MA
-
Peter Mohylsky, Beach ...
Miramar Beach, FL
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Bob Crane
Stevens Point, WI
-
Raj Taj
Lake Bluff, IL
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
1,052,176
Market value = buyer's and seller's opinion of value, if they coincide
Appraised value = appraiser's opinion of value
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Mary Yonkers
Erie, PA
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Ron and Alexandra Seigel
Carpinteria, CA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Richard Weeks
Dallas, TX
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Bob "RealMan" Timm
Minot, ND
-
Raj Taj
Lake Bluff, IL
1,502,898
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.
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Mary Yonkers
Erie, PA
-
Kris Collis, Associate...
East Stroudsburg, PA
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Candice A. Donofrio
Fort Mohave, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
187,002
"It's hard to deny the gift 🎁 of perfect love! 💘"
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Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Bob Crane
Stevens Point, WI
-
Roy Kelley
Gaithersburg, MD
-
Candice A. Donofrio
Fort Mohave, AZ
1,196,588
You have received the answer you need
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Mary Yonkers
Erie, PA
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Anthony Acosta - ALLAT...
Atlanta, GA
-
Debe Maxwell, CRS
Charlotte, NC
-
Raj Taj
Lake Bluff, IL
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
1,153,794
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.
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Mary Yonkers
Erie, PA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
3,344,906
I echo Debe Maxwell, CRS comment.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
5,048,748
There are some good answers here - not sure I can add anything!
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Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
-
Joseph Domino 480-390-...
Scottsdale, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
5,583,278
Roy Kelley gave a good answer....
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Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Joseph Domino 480-390-...
Scottsdale, AZ
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Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Roy Kelley
Gaithersburg, MD
2,781,123
One is an opinion of value and the other is the value based on ready, willing and able participants
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Mary Yonkers
Erie, PA
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
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Joseph Domino 480-390-...
Scottsdale, AZ
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
1,197,042
Both wildly misunderstood numbers.. market is what a buyer and seller agree upon and appraisal is required by a bank
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Peter Mohylsky, Beach ...
Miramar Beach, FL
628,764
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.
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Mary Yonkers
Erie, PA
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Candice A. Donofrio
Fort Mohave, AZ
-
Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
2,240,975
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.
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Mary Yonkers
Erie, PA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
4,882,355
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.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
1,311,367
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.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Nina Hollander, Broker
Charlotte, NC
352,976
Roy Kelley hit the target 🎯 on the response.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
-
Joseph Domino 480-390-...
Scottsdale, AZ
3,416,038
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.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
851,242
GREAT question! I can't provide anything more than you already have from those who responded.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
5,104,931
What Joseph Domino 480-390-6011 said.
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Mary Yonkers
Erie, PA
-
Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
921,504
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
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Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
-
Doug Dawes
Topsfield, MA
2,220,323
Good luck with your studies.
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Mary Yonkers
Erie, PA
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Anthony Acosta - ALLAT...
Atlanta, GA
509,449
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.
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Mary Yonkers
Erie, PA
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Bob "RealMan" Timm
Minot, ND
2,178,533
Appraisal value is very objective, based on actual sales history. Market value is much more subjective.
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Mary Yonkers
Erie, PA
-
Bob "RealMan" Timm
Minot, ND
5,772,575
Andrew,
You have good answers. A
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Mary Yonkers
Erie, PA
-
Bob "RealMan" Timm
Minot, ND
2,182,502
Market Value is the Price it actually Sells For
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Mary Yonkers
Erie, PA
-
Bob "RealMan" Timm
Minot, ND
1,452,669
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!
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
4,800,082
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.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
1,712,676
It's in the book.
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Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
1,543,602
Appraisal is what the lender is willing to risk.
Market Value is what the public (market) is willing to pay.
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Thomas J. Nelson, REAL...
La Jolla, CA
1,231,853
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.
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Raj Taj
Lake Bluff, IL
1,239,801
5,868,372
5,216,353
4,935,567
900,118
Appraisal value = estimate
Market value = real, what someone actually paid