What is the difference between market value and appraised value?

The difference between market value and appraised value in residential real estate law in New Hampshire can be a bit confusing. Market value is the highest price that a buyer is willing to pay and a seller is willing to accept for a property in an open market. Market values take into account the location, condition, and features of the home, as well as demand from potential buyers. Appraised value is the opinion of the home’s value made by a qualified appraiser. The appraiser looks at similar, recently sold homes in the area to determine the value of the home. Appraisers also consider local building codes, zoning laws, and other factors that might affect the value of the home. Appraised value is often used to set the loan amount of a mortgage or provide an insurance policy for the home. In New Hampshire, the appraised value of a home should generally be close to the market value, but it is not always the same. Market value is typically the higher of the two, since it is based on the highest amount a seller is willing to accept. Although market value and appraised value can be used interchangeably in some cases, the two terms have different meanings and depend on the situation.

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What is the difference between market value and appraised value?

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