Thinking of buying a new home or perhaps you are in the initial stages of selling your home. Your real estate agent is talking with you about value, and you hear two phrases that do not resonate - market value and appraised. Time to ask questions.
Appraised Value - it is the value or estimated worth of a property as determined by a professional appraiser. The process for making an appraisal includes considering location, condition of the house, and recent sales in the same area. Appraisals are often used by lenders when determining loan amounts.
Market Value - is the estimated amount a property can sell for in the current market. Factors that influence market value are supply and demand. Other factors include the location, condition of the property and current real estate market trends for that location.
Bottom Line: The appraised value is an estimate of a property's worth as determined by a professional appraiser. Whereas, the market value is the estimated amount a property would sell for within a local market. Both are essential in real estate valuation.
No comments:
Post a Comment