MARKET Value: This is the price that a ready, willing and able buyer will pay in the open market AND an informed seller will accept—neither being under duress. This is the value that real estate licensees will compute in a Comparative Market Analysis (CMA).

APPRAISED Value: What a licensed (by the state) appraiser determines the property is worth. Every lender (bank, mortgage company, etc.) will require an appraisal as a condition of making the loan. A licensed appraiser has specific guidelines that he/she must follow in determining value. If the appraiser determines the property value to be lower than the sales price, the loan may be denied.

The appraised and CMA values are usually close, but there may be minor differences.

ASSESSED Value: The value a county appraisal district assigns to a property for the purpose of calculating property taxes. This value MAY be close to the market or appraised values, but often is VERY far off!

THE PROPERTY’S “VALUE” IS NOT DETERMINED BY:

• What you paid for it!
• What you “need” to get for it!
• What you “think” its worth!
• What someone else suggests that it’s worth!