Home Buying in Cedar Park>Question Details

Buyerinaustin, Home Buyer in Austin, TX

Appraised value vs Market value

Asked by Buyerinaustin, Austin, TX Thu Dec 13, 2012

How far-off is the appraised value (by an independent appraiser) from a market value for a home ?
Any input highly appreciated.

Help the community by answering this question:


Making sure you aren't referring to a tax appraisal which can be way off the mark from an agreed upon sales price between a buyer and a seller. That's the true market value. A professional appraisal should come in reasonably close to the market value.
0 votes Thank Flag Link Thu Dec 13, 2012
There are so many variables it's hard to say for certain but look at it this way. A home is worth what somebody is willing to pay for it and not a penny more. I just answer a question where they were concerned the home appraised for the same amount as the purchase price.

This actually happens a lot and for good reason. If you are a willing buyer and an offer is accepted to buy a home that is what the property is worth. Now maybe you our your agent were not aware of the market conditions and similar homes have sold for less. There is a chance that the appraisal could come in less than your offer and if that happens you either need to bring additional money to closing, renegotiate the purchase price or walk away. While this has been more common lately it does not happen very often in this area.

Educated agents and their buyers look at the same comparable homes that an appraiser is looking at when determining value so in reality they should come to similar conclusions on value. Sure you want to get the home for as little as possible and the seller wants you to pay as much as possible but typically you will come to a negotiated price of both parties are serious and that is going to be a good approximation of the true value of the home and in many cases your appraisal will also support the price that is being paid.

So getting back to your question you really can never know for sure until you have a willing buyer and seller who can agree on a price... that always is the answer to the value of a home.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Thu Dec 13, 2012
The Appraisal could be close; it would depend upon WHY the Appraisal was done:
If you hired an Appraiser to do an independent appraisal for you, with no adjenda, that would probably be fairly accurate.
Understand that you probably wasted that $450; it would not be good for anything.

If your Bank had an Appraiser do one for them; they are just trying to cover the amount of the Loan:
This wouldn't reflect any Value to you.

If you are considering BUYING, and you want to know what MARKET VALUE is; have your Realtor do a CMA.
0 votes Thank Flag Link Thu Dec 13, 2012
In deeper answer to your question here is an interesting article...
0 votes Thank Flag Link Thu Dec 13, 2012
Appraised value is what an appraiser says that the property is worth. A market value is what a ready and able buyer is willing to pay for the property. Usually the appraised value and market value are very close to each other.
0 votes Thank Flag Link Thu Dec 13, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer