Appraisal Value vs. Market Value

Welcome back to my video blog. Today I wanted to talk about the difference between market value and appraisal value. Lately, we have encountered quite a few situations where we receive a market value offer on a home, then the appraisal value comes in low.

Does this mean that the seller should automatically reduce their price? Not necessarily.

Appraisers work off of past sold properties. We are in an appreciating market. When an appraiser looks at the square footage of your home, the number of bathrooms, your basement, and everything else that works to build your appraisal value, they compare it to homes that sold as much as 90 days ago. When the market appreciates rapidly, appraisals come in low.

It's important for a buyer to understand that you will need to sometimes put cash down in addition to their down payment in today's market.

If you are selling your home and you need someone to protect your equity, give me a call. Let me help you get the best price on your home.

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