Question 1

Is Market Value More Than Appraised Value?

Accepted Answer

The fair market value is a snapshot of how much a home is worth at a particular moment in time, while the appraised value is more of an objective valuation of a home’s features and condition. Since the fair market value is most useful to sellers and their listing agents, it's likely to be higher than the appraised value, as long as the market will bear it. Learn more about how market value compares with appraised value.

Question 2

What happens when the appraisal is less than the market value?

Accepted Answer

A buyer wouldn't want to pay more for a home than its appraised worth. More importantly, their lender will likely not approve a mortgage that prices the home above it's appraised worth. Learn more about what happens when the appraised value of a home is less than the market value.

Question 3

Is Fair Market Value the Same As Appraisal?

Accepted Answer

There are subtle but important differences between the fair market value and the appraisal value of a home. Fair market value is based mostly on comparisons to other recently sold homes and reflects the current market. Appraisal value is based on a personalized, close examination of your home by a licensed professional. Market value comes into play, but more weight is placed on your home’s features and conditions. Learn more about the difference between fair market value and appraised value.

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