Seller Resources - Articles

Selling Your Property - Appraisals & Market Value

What is the difference between market value and appraised value?
The appraised value of real property is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.


What standards do appraisers use to estimate value?
Appraisers use several factors when estimating real property's value, including the structure's size and square footage, the condition of the structure and neighborhood, comparable local sales, any pertinent historical information, sales performance and indices that forecast future value. For detailed information on appraisal standards, contact the Appraisal Institute at 200 W. Madison, Suite 1500, Chicago, IL 60606, 7 a.m. - 5 p.m. CT; 888-7JOINAI (754-4624).

Ted Blocker
Ted Blocker
CCIM, CPM