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

How can I find a lawyer who specializes in residential real estate law?
What is a deed of trust with a power of sale?
What is the difference between an affidavit of title and a title commitment?
What is the difference between a fixed-rate and an adjustable-rate mortgage?
What are the pitfalls of foreclosure?
What is a lease purchase agreement?
What is a closing disclosure statement?
What is a title search and why should I do one?
What is a condominium and what are the requirements of purchasing one?
What is a servitude?

What is the difference between market value and appraised value?

Related FAQs

Related Blog Posts