What is the difference between market value and appraised value?

Market value and appraised value are two important terms used in Virginia residential real estate law. Market value is the price that a property is worth according to the current market conditions. This means that the market value is the amount of money that a willing buyer would pay for a property. The market value is usually determined by a real estate appraiser, who looks at the condition, features, and location of the property. Appraised value is also known as the estimated market value. The appraised value is an estimate of the value of the property based on the current market conditions. It is typically used by lenders when deciding whether or not to finance a property. The appraised value does not necessarily reflect the actual market value of the property. In short, market value is what a buyer is willing to pay for a property according to current market conditions; whereas, appraised value is an estimate of the value of a property based on current market conditions. The two values are often used in tandem when evaluating a property’s worth.

Related FAQs

What is a certificate of title?
What is the difference between a real estate attorney and a real estate agent?
What is a Notice to Quit?
What is a disclosure statement for a purchase agreement?
What documents should I review before buying a home?
What is an easement?
What is a deed of trust with a power of sale?
What can I do if I'm the victim of predatory lending?
What types of transactions does residential real estate law cover?
What is dual agency in a real estate transaction?

What is the difference between market value and appraised value?

Related FAQs

Related Blog Posts