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Im confused

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Bemis Pownall

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No wonder we cant get a break
it appears the general public thinks we are suppose to hit value too.
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What is the difference between a home's appraised value and market value?
Appraised value is a certified appraiser's opinion of a home's worth at a given point in time. Market value is what price the house will actually bring at a given point in time. A comparative market analysis, which is performed by a real estate agent or broker, is an informal estimate of market value based on sales of nearby comparable properties. Lenders require appraisals as part of the loan application process; fees generally range from $200 to $400.
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http://homeadvisor.msn.com/help/advisor.aspx?ID=9264
 

jt

Freshman Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
What is your question?

We are suppose to hit VALUE... Market Value; not necessarily the value the client may be seeking.

Market Value is established by the buyer and seller and is documented at the time of closing.

Appraisers give their OPINION of Marker Value based on the effective date of the appraisal report(a given point in time). We use to ESTIMATE Market Value, but we don’t do that anymore.

Comparative Market Analysis(CMA) is not an appraisal; it is an analysis which is performed by a real estate agent or broker which is considered an informal estimate of market value used usually to established a listing/selling price.
 
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Bemis Pownall

Thread Starter
Guest
So our estimate of market value is not what the subject will sell for??

In the Distionary of Real Estate Appraisal

Market value is the "most probable price which a property should bring in a competitive and open market...."

I always was under the impression if we appraise a home on Elm Street for X amount. Should it go up for sale around the effective date it should sell at or close to the value we have signed off on. Not merely an opinion. But a value based on the most similar sales we have found in our research.

Perhaps im splitting hairs here but I feel this definition supplied at this website is slightly misleading to the laymen or typical homeowner..
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
I actually think this is a fairly good definition of Appraised Value and Market Value.

When we do an appraisal, we only give an opinion of what the Market Value is at the time and date we do the inspection.

Market Value can only be proven by an actual closed sale on the open market, meeting all of the conditions contained in the definition of Market Value.

In fact, it would be impossible to prove or disprove the Appraisers Opinion of Value. The property would have to have been put on the market prior to the inspection date and would have had to sold, or at least had a meeting of the minds, between buyer and seller on the date of the inspection. Since this would have created an exchange, the need for a opinion of value for refinancing purposes for example would be moot as the property would not longer belong to the seller and therefore they would not be in a position to offer it as security for a loan.
 
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