When selling a home, understanding the distinctions between appraisal value and market value in Colorado Springs is crucial. While both of these concepts reflect your home’s value, they measure it in different ways. In this post, our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will discuss appraisal value vs. market value, as well as which one is more relevant when you’re selling your home.
Appraisal vs. Market Value – What is Appraisal Value?
An appraisal is a formal home evaluation conducted by a professional licensed appraiser to determine the property’s value based on various factors, including:
- Location
- Square footage
- Condition
- Curb appeal
- Age
- Interior design and layout
- Condition of major systems (plumbing, HVAC, electrical) and appliances
The appraiser will also study the prices of recent sales and currently listed properties in the area to complete their property valuation.
Appraisals are a more in-depth valuation and represent your home’s exact value– not just an estimate. Appraisals are usually required by a financial institution or lender before approving a buyer’s mortgage loan.
For this reason, it’s typically the home buyer’s responsibility to pay for the appraisal as part of the home-buying process. However, nothing stops you as the home seller from paying for an appraisal yourself.
Appraisal vs. Market Value – What is Market Value?
Unlike appraisal value, market value is a more subjective determination of your home’s worth. Market value reflects the broader dynamics of supply and demand in the current real estate market. In simple terms, it’s the price a buyer is willing to pay and a seller is willing to accept in an open and competitive housing market.
The market value can be more or less than the bank’s appraisal. In general, a more competitive market will lead to a higher market value.
Market value is determined by your realtor through a comparative market analysis. This process evaluates other recent sales in the area, similar to an appraisal, but it doesn’t go as in-depth.
Should You Use Appraisal or Market Value in Colorado Springs?
In the context of selling a home, market value is typically more relevant. It considers the ever-changing dynamics of the real estate market and factors in buyer preferences, economic conditions, and local trends. Real estate professionals often use market value to strategically price a home for sale, ensuring it attracts potential buyers in a competitive market.
As a seller, understanding your home’s market value is important so you know what buyers are willing to pay for it given the current market conditions. If you list your home at a price that is too high above market value, home buyers will overlook it in favor of other options. This could result in your home sitting on the market until you decide to reduce your asking price.
Find Your Home’s Market Value in Colorado Springs Today
If you are looking to sell a home, it’s important to understand the impact of appraisals and market value in Colorado Springs. At Your Home Sold Guaranteed Realty - Barb Has the Buyers Team, we’ve been helping home sellers sell their homes fast and for top dollar for over 25 years.
We’re one of the top-performing realtors in Colorado Springs for a reason. On average, we sell homes 66% faster and for $20,520 more money. Plus, our Guaranteed Sale Program ensures your home-selling experience is risk-free.
To get more information about our team or to start your real estate journey with us, feel free to give us a call at 719-301-1802 or send a message to [javascript protected email address] today.
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