What Is the Difference Between Appraisal Value and Market Value

Why do appraised and market value differ? Because the appraised value is what a professional appraiser believes a property is worth (a professional opinion) vs. the market value, which is what the buying public is willing to pay for the property instead.

Is market value more than appraised value?

Market value is much more volatile than an appraisal and is adjusted for things like market conditions. This includes whether it’s a buyer’s or a seller’s market, the overall economy, and the popularity of the location. Home improvements are, of course, another way to increase the market value of a home.

Does an appraisal determine fair market value?

An appraisal is a more comprehensive valuation. These two numbers can vary, but ideally they end up pretty similar. During the negotiating process, the market valuation will essentially be the agreed upon price. The appraisal will estimate to what degree that market value is correct.