Appraised Value vs. Market Value: What’s the Difference?

The main difference between Appraised Value and Market Value is that an appraiser determines the Appraised Value, while buyers and sellers in the market decide the Market Value.

Before we move to more differences, let’s first understand Appraised Value and Market Value:

  • Appraised Value: The appraised value is how much something is thought to be worth after a careful look by an expert. It helps figure out the fair price of things like houses or jewelry.
  • Market Value: Market value is what people are willing to pay for something right now. It shows how much something is worth in the current buying and selling world.

Now, let’s get to Appraised Value vs Market Value:

Major differences between Appraised Value and Market Value

Appraised Value Market Value
Appraised value is determined by a professional appraiser. Market value is influenced by buyer and seller interactions.
Appraised value is often used by lenders to assess loan amounts. Market value helps in determining a competitive listing price.
Appraised value is based on an inspection of the property. Market value is influenced by current market conditions.
Appraised value is more precise and calculated. Market value can fluctuate based on demand and supply.
Appraised value is typically used in mortgage applications. Market value guides real estate transactions.

So, these are the main differences between the entities.

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