Appraised Value — A property’s worth based on the evaluation of a professional appraiser assessing traits like size, overall condition, special features and so on.
- Lenders use appraised values to help determine the size and terms of a home loan. An appraisal is almost always required when you first purchase a home, but may also be requested for a refinance or home equity lending.
Assessed Value — Figure assigned annually by your local government, taking into account the property’s appraised value, comparable home sales and local market conditions; usually lower than appraised value.
- Your property taxes are based on your home’s assessed value. If you feel your assessed value isn’t accurate, you can dispute the number with your local government.
Market Value — The price for which a home actually sells or an estimate of what it will sell for in a reasonable period of time (usually considered 30 to 90 days).
- Market value is based largely on the home’s features, condition and location, as well as recent sale prices of comparable properties in the area.
Appreciation — The increase in the value of your home over a period of time due to changes in overall market conditions, in your specific neighborhood or to the home itself (renovations).
- Homes may also depreciate (decrease) in value, if market or neighborhood economies take a negative turn, or if your home’s condition deteriorates.
Home value isn’t the only confusing term when it comes to buying, selling and owning a home. To decipher more lingo, check out our Loan Terminology page or contact us directly.