However, there are distinct differences between the market value and the appraised value of real estate. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. The appraisal value of a home is determined by a licensed home appraiser. This comes into play when a buyer’s offer is “contingent upon the appraisal.” The Differences Between the Two Values. It’s common to get free market appraisals from Real Estate agents when you’re planning to sell their home. A court can also request a valuation be done to resolve property settlements or other disputes. This can include de-cluttering, gardening and redecoration. While current homeowners can hire an appraiser at any time to get a better idea of what their house is worth, appraisals are usually initiated by a bank when a buyer is attempting to secure a mortgage. For these reasons, the Chancellors Group of Estate Agents does not provide clients with formal valuations. In situations like these, the deal can fall through if the buyer is unable or unwilling to pay the difference in cash. Market appraisals vs formal valuations: the basics. They’ll also factor in a number of other relevant points such as recent home improvements, curb appeal, the surrounding neighborhood, and the general market conditions in the region. It’s a complex process, and in most Australian states a formal valuation can only be provided by a qualified valuer … However, that doesn’t mean that you can’t estimate it — real estate agents usually do this at the beginning of the selling process. The main difference between a home’s market value and appraisal value is who determines it: market values are decided by buyers and sellers, while appraisal values are calculated by licensed appraisers. This is to prevent any bias when determining the fair market value. Meanwhile, an instant online valuation is a useful initial guide to prices in your area, but lacks the insight of a more detailed assessment. Although the appraised value and the assessed value can be similar, they are often not. Thinking of letting your property? If you’d like to learn more about selling your home, just fill out our form and we’ll be in touch shortly. When a buyer attempts to secure a mortgage, they’ll need to have the property appraised. © Copyright Chancellors 2020 The Chancellors Group of Estate Agents Ltd. By continuing to use our site, you are consenting to the use of cookies. In a comparative market analysis, a real estate agent will compare a home to other houses that were recently sold or listed in the area to derive a competitive price. While the appraisal is the closest estimate to the actual value of the home and can determine the financing process, the market value is the price that is usually the purchase price in … The market value is whatever price the buyer and seller agree on. Market Value. If you’re interested in either buying or selling your house, Clever can help: we partner with top-rated local real estate agents to help you get the best possible deal on your property. Of course, different Registered Valuers may provide different opinions of value. However, the market value is a reflection of what a buyer may be willing to pay for a home or property. A fee must be paid for the Registered Valuer’s opinion. As they say, knowledge is power, and if you’re looking to buy or sell real estate, the more power you have, the better. Prefer text? Clever’s Concierge Team can help you compare local agents and negotiate better rates. 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