House Market Value - The Difference Between Market Value and Appraised Value

Many people are under the impression that housesimilar properties in similar condition and detail
market value and appraised value are one and thewithin the general area of the property.
same. This is not correct. When delving into theThis is called a comparative market analysis,
world of real estate, this is an important fact towhere an assessment of recent sales of the
be aware of.similar properties actually comes into play. This is
An appraisal is used to determine the value of amost commonly done by the real estate agent
property. These numbers are put together by aninvolved in the possible transaction.
appraiser that is certified. As in any case, findingAll loan institutions require a thorough evaluation of
an experienced appraiser is essential to a properthe property before they are able to begin the
appraisal. Most often an appraisal is conducted atprocedures involved in processing a loan
the request of a buyer who is in the process ofapplication. It is good to remember that the
obtaining a loan and must present this informationappraiser is hired to assure the lender that the
to their loan institution.property is in fact worth what the loan request is
House market value is akin to an appraisal. Theshowing. As a result the lender will also require
difference is when a certified appraiser is notthat the appraiser involved is, at the very least,
involved. Most often the determination is made bycertified.
a real estate agent or broker. This is when itWhether you are a buyer or seller, it is always in
becomes considered market value.your best interest to look at both the appraisal
Basically, house market value is the amount ofand house market value.
money your house is worth in comparison to