What is the difference between market value and appraised value?

Market value and appraised value are two terms related to residential real estate law in California. Market value is the price that a property would likely sell for in the current market. In other words, it is an estimate of the monetary worth of a property based on current market conditions and trends. Appraised value is the estimated value of a property set by a professional appraiser. Appraisers look at the property itself, considering factors like its condition and features, as well as external factors like its location and the current real estate market. The main difference between market value and appraised value is that market value is determined by what buyers and sellers in the current market are willing to pay, while an appraised value is determined by a professional appraiser. Market value involves factors like the real estate market and sales of comparable properties, while appraised value typically looks at factors related to the property such as its condition, features, and location. A property’s market value and appraised value can be different. Factors such as a declining real estate market, changes in the property’s condition, or the introduction of new development into the area can all affect a property’s market value, while an appraiser’s opinion of the property’s worth may not change. This difference can have an effect on the price of a property when it is being bought or sold.

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What is the difference between market value and appraised value?

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