I recently had a call from a client who said he wanted to sell his home. I assumed that he was going to ask me to evaluate his home in order to determine the "MARKET VALUE" and thus a list price for his home.
I was surprised when he told me that he had already had an appraiser in his home and that he had already determined the "MARKET VALUE" and the list price of his home!
When we met, I explained to him that although the valuation of the appraiser is valid, it sometimes may be different from the actual MARKET VALUE of a property.
We define MARKET VALUE as the price that a READY and WILLING BUYER is willing to pay a READY and WILLING SELLER at a given point in time. Whereas the appraisal is based on different criteria such as the lot value and the value of the structure of the home and any additions or renovations done to the home. Also depending on the reason for the appraisal, the criteria used by the appraiser to determine the value of a home will slightly differ.
Although often very similar, these two values might be different and therefore, if you are thinking of selling your home, it is very important to have a real estate agent evaluate your home to identify an accurate and up-to-date list price for your home.