Written by Trinise L. Castro; Updated December 15, 2018
Both market value and appraised value are utilized in dealings of farms and land. However, there are distinct differences between the market value and the appraised value of real estate. Market values are consumer-driven and appraised values are driven by experts.
The appraised value of a property describes the determination of an exact number regarding its value. Appraised values are based on gathered data and the professional judgment of the professional conducting the appraisal. The market value has more variance than the appraised value. Unlike the appraised value, buyers have influence over the market value of a property because a property is only worth what a buyer is willing to pay.
Market value can be determined by either licensed or unlicensed individuals, but only a certified or licensed individual can perform a property appraisal. If the market value is calculated by a licensed real estate agent, the report might include other active property listings, pending property sales, sold properties in the last 12 months and expired listings.
In contrast, an appraiser does not represent any particular person. An appraiser simply performs the service of determining the property’s appraised value. Appraisers do not represent an individual’s interests regarding a property, but the appraisal report should be written in a clear format allowing the reader to follow the appraiser’s determination.