What’s the Difference Between Appraised Value and Market Value?

Appraised Value and Market Value

Most homeowners compare price listings on similar properties when considering their value. While the market value of real estate is a useful indicator (because it represents what the buyer is generally willing to pay), it doesn’t tell the whole story. If you’re considering selling your home, be aware that appraised and market values are assessed differently and function differently.

Understanding appraised value

The appraised value is determined by a licensed appraiser’s unbiased, professional assessment of a home. Lenders require appraisals to approve or decline loans and mitigate lending risk. Suppose an appraisal is lower than an offer for a property. In that case, the buyer and seller can use concessions to prevent the deal from falling, or, in less-favorable circumstances, the buyer could walk away from the sale.

Appraisals are calculated on various external, internal, and market-based factors. While market-based factors are out of homeowners’ control, homeowners can improve the exterior and interior determining factors (like curb appeal, residential paving, code compliance, structural integrity, and general condition) with Curbio’s pre-listing home improvement services.

Understanding the market value of your home

Your home’s market value is the amount buyers are willing to pay for it, not the price that you, as the seller, determine when listing it. Market value is more variable than an appraisal; it’s adjusted for market conditions. Determine your home’s market value by learning the prices of comparable listings in your area. When you’re preparing to list your home, ask yourself:

  • Is it a buyers’ or a sellers’ market?
  • How is the overall economy?
  • How popular is your location?

Get your home market ready with Curbio Home improvements are pivotal to your property’s appraised and market values. With Curbio, home repairs and remodels are easy and affordable. We’ll manage your projects and get you to market. You’ll pay the fixed fee for home improvements once your house sells. Discover the benefits of Curbio’s end-to-end pre-listing services.