Appraised value is an objective assessment of a home’s value based on the findings of an appraiser. So, things like décor, buyer must-haves, and other personal preferences aren’t considered. Instead, the appraiser sticks to things that can’t be so easily changed, like size and location.
In contrast, a property’s market value is more subjective. It’s based on what the average buyer is willing to pay for a home at a specific point in time. Things like pre-listing home improvements, staging, and great photos not only boost a property’s digital curb appeal, but also help Realtors® and their sellers significantly raise a home’s market value.
While a significant difference between market and appraised values is uncommon, it can happen. As a Realtor®, it’s your job to weigh the factors that go into each to determine your pricing strategy.