Valuations – How They Differ
Market Value — what someone’s willing to pay.
Appraised Value — what the Appraiser thinks the property is worth, based on past sales and market conditions. Usually concerned more about structure, “bones”, mechanical, functionality, location, and highest-and-best-use than with surface finishes. Typically used by Lenders when considering a loan on the property.
Potential Sale Price Range — what the Broker thinks someone might be willing to pay for the property, based on past sales, current pending listings, and current active listings, and market conditions. Usually based on a Comparative Market Analysis, and considers most of the same things as an Appraisal but also weighs finishes more heavily along with “what’s hot and what’s not” in the given Market. Typically used to either help the SELLER set a sale price or a BUYER set an offer price.
Assessed Value — what the Assessor’s Office thinks the property is worth. Used for taxation purposes.