What distinguishes market value from appraised value?

Market value is defined as the price that a property would sell for in an open and competitive market, driven by what buyers are willing to pay based on their perceptions, preferences, and needs. This value can fluctuate depending on the current market conditions, buyer demand, and other external factors.

Appraised value, on the other hand, is determined by a professional appraiser who conducts a detailed analysis of the property. This process involves comparing the property to similar properties, considering various aspects such as location, size, condition, and specific features. The appraiser provides an objective valuation that reflects the property's worth based on a systematic approach.

This distinction is significant because it highlights that market value is influenced by actual market behavior and participants, while appraised value is a more technical assessment based on data and established appraisal practices. This professional input aims to provide a reliable valuation that may or may not align perfectly with market conditions.

Understanding this difference helps real estate professionals, buyers, and sellers make informed decisions based on the context of both values within the real estate landscape.