What is the difference between market value and appraised value?

Market value and appraised value are terms that are often used when discussing residential real estate law in Delaware. The difference between them is relatively simple but significant. Market value is the price that a property would typically sell for in an open market in its current condition. This is often determined by comparing the prices of similar homes in the same area. Appraised value, on the other hand, is an estimate of what a property is worth based on more than just its market value. It takes into account information about the condition and features of the home, such as its age, condition of the roof and exterior, number of bedrooms, etc. It also considers factors like the quality of the neighborhood, nearby schools, and access to public transportation. An appraised value is often used by banks and other lenders when approving loans for buyers. In summary, the difference between market value and appraised value is that market value is a reflection of what a home could sell for in an open market, while appraised value is an estimate of what a home is worth based on its condition and features, as well as its location.

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What is the difference between market value and appraised value?

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