Today I wanted to take a moment to write about the Market Value of your home, in comparison to the Appraised Value of your home. If you are wondering why there is a difference in the two numbers, you are not alone. Knowing, and understanding that there is a difference between the two, will save you time and money in the long run when selling your home.
What is an Appraisal?
An appraisal that is conducted by a licensed real estate appraiser is an opinion of value based upon certain conditions and for a specified purpose. Most of the time the specific purpose of an Appraisal is for a lender to ensure that the buyer is not paying more than what the bank could sell the home for should it become a foreclosure. When a home is purchased, a mortgage lender will want to know if the home is worth the amount that you are willing to spend.
What is Market Value?
Market Value of your home is defined as what a buyer is willing to pay for your home. But wait… doesn’t that sound like what an appraisal should be? The answer is, no. The actions of one specific buyer doesn’t always represent the actions of a typical buyer purchasing a home. The goal of an appraiser to to estimate the true value of a property so that a lender can make an informed decision when providing a loan. The goal for Josh and I as Realtors, is to provide you with a price for your home that will attract a buyer at the highest price possible, but also in a reasonable amount of time.
If you’ve thought about selling your home, or if you’d like an instant Market Value of your home sent to your email…. click here!
If you have questions about Appraisal Value VS Market Value of your home, please contact me via email – firstname.lastname@example.org
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