What is the difference between market value and appraised value?

In South Carolina, the difference between market value and appraised value is critical to understanding residential real estate law. Market value, also known as fair market value, is the price for which a property can be sold on the open market, meaning it is what a willing seller can expect to receive from a willing buyer. It is the most accurate representation of the current value of the property. Market value, in most cases, is determined by supply and demand and is based on the opinion of a qualified real estate appraiser. Appraised value is the estimate of a property’s worth determined by a licensed appraiser. Appraisals are generally conducted in order to help banks and lending institutions determine how much a borrower can borrow in order to purchase a property. A qualified appraiser looks at several factors such as the condition of the property, its location, access to amenities, and recent sales of similar properties in the area to determine an appraisal value for the property. The difference between market value and appraised value is that the market value is the actual current price of the property in the open market, while the appraisal value is an estimate of a property’s worth based on the opinion of an appraiser. In most cases, the appraised value will be lower than the market value.

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What is the difference between market value and appraised value?

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