Now can an appraiser say the home is worth 200,000 when somebody is only paying 150,000 for it. How can the appraiser justify that? The reason it matchs the purchase price is because the appraiser will have to justify it.
Appraised value is a value determined by an appraiser from comparisions in the market. Actual property value is what you can sell it for. One can be higher or lower then the other.
The appraisal value is a subjective opinion based upon market conditions and comparable sales in the recent past. The property appraisal value is usually indicative of the actual property value.
The actual property value is what ever someone else will pay for the property.
Thus, an appraiser may value a house at $1 million dollars, but that doesn't preclude an interested buyer willing to pay more (or less). Remember, an appraisal is a subjective opinion made by a singular appraiser.
It has been my experience that the appraisal often comes in at almost what is offered for the house, which seems REALLY suspect to me! That has happened every time I buy a house, so I don't put much into a house appraisal. Real estate agents, that you can trust, know the true value of houses better than appraisers. But that's just my opinion.
I still think appraisers are necessary to basically protect buyers, and sometimes sellers from buying a house for too much. An appraisal is SUPPOSED to go over all of the home's features and compare them to other houses of comparable size, style, and location. But that's really difficult to do sometimes, so appraisers just find the houses in the area that are the most similar, which might not be very similar at all. But by law, that's all they have to do, find the most similar.
Banks go by what an appraiser says it is worth.
Property value is from what I understand, determined by the county tax commissioner's office. But that is based upon the last sale price of the house, and then adding a little more value to it. You can often argue that price with the tax commissioner too, and sometimes they will agree to change it, (lower it for you in most cases).
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To answers daves idionic rant.
Now can an appraiser say the home is worth 200,000 when somebody is only paying 150,000 for it. How can the appraiser justify that? The reason it matchs the purchase price is because the appraiser will have to justify it.
Appraised value is a value determined by an appraiser from comparisions in the market. Actual property value is what you can sell it for. One can be higher or lower then the other.
The appraisal value is a subjective opinion based upon market conditions and comparable sales in the recent past. The property appraisal value is usually indicative of the actual property value.
The actual property value is what ever someone else will pay for the property.
Thus, an appraiser may value a house at $1 million dollars, but that doesn't preclude an interested buyer willing to pay more (or less). Remember, an appraisal is a subjective opinion made by a singular appraiser.
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It has been my experience that the appraisal often comes in at almost what is offered for the house, which seems REALLY suspect to me! That has happened every time I buy a house, so I don't put much into a house appraisal. Real estate agents, that you can trust, know the true value of houses better than appraisers. But that's just my opinion.
I still think appraisers are necessary to basically protect buyers, and sometimes sellers from buying a house for too much. An appraisal is SUPPOSED to go over all of the home's features and compare them to other houses of comparable size, style, and location. But that's really difficult to do sometimes, so appraisers just find the houses in the area that are the most similar, which might not be very similar at all. But by law, that's all they have to do, find the most similar.
Banks go by what an appraiser says it is worth.
Property value is from what I understand, determined by the county tax commissioner's office. But that is based upon the last sale price of the house, and then adding a little more value to it. You can often argue that price with the tax commissioner too, and sometimes they will agree to change it, (lower it for you in most cases).
It sure can be different.
Market value is what someone is willing to pay for your property.
Appraisal value is what the bank says it's worth.
They tend to be close if you use a real estate agent and they do a market analysis.