1060 S. Main Bldg. B
Suite #301B
St. George, Utah 84770
(435) 862-3303    Office
Utah Luxury homes

Utah Luxury homes

Articles  >>  What Is The Difference Between Market Value And Appraised Value?

What is the difference between market value and appraised value?

These terms are used often when dealing with real estate. They are often mistaken for the same meaning and tend to cause confusion. Knowing the difference between the two will help you understand the home buying process more.

Appraised Value

The appraised value of a home is the number calculated at the end of an appraisal at whatever point it’s been given. This will be conducted by a certified appraiser who has the knowledge to assess the value. It is generally the cost to rebuild an exact replica of the home in question. Appraisals are required by lenders to ensure they are not writing loans that exceed the actual value of the home.

Market Value

The market value of a home is the number calculated by real estate professionals based on the area of the home. It is usually determined by performing a Competitive Market Analysis (CMA). There are many factors that go into determining the market value which include: similar homes, how quickly the home needs to sell, and knowledge of the current trends in that particular area.

It’s very important to understand both terms to be able to ensure you are paying the right amount for the house you are interested in. Don’t just assume you are getting a great deal because the home is listed far below the appraised value, without taking into consideration the actual market value. It’s important to work closely with your realtor to determine the current market value to make sure you don’t overpay. 

 Admin Login Real Estate Web Site by AgentWebHelp.com