12/29/2022
Confused about the difference between a home's appraised and market value? Don't worry, it happens to the best of us! Here's a quick breakdown of the two:
🔷 Market value is the price that the average buyer is willing to pay for a property, and is typically used to determine the listing price of a home. This subjective number is determined based on the prices of comparable homes in the area, the economy, popularity of the location, and home improvements. Fair market value is typically used to determine the listing price of a home.
🔷 Appraised value refers to the objective value of a home assigned by a licensed appraiser. This number helps a buyer to determine whether the offer they've made is in line with the home's value; a lender typically will not extend a loan amounting to more than the property's appraised value.
Typically, these numbers should be similar, but if you find that there is too large a discrepancy between the two, you can contest the appraised value or pay out-of-pocket for a second appraisal! Don't be afraid to double-check!
Need to know the fair market value of your home? Contact us today!
Call NextHome Valley Properties Today!
📲 (970)-242-HOME
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