Appraised Value vs. Market Value: What’s Your Home Really Worth?

By Gordon Watson

When it comes to selling a home, one of the most common and misunderstood questions is: “What’s my home worth?” Most sellers assume the appraised value is the final word, but the truth is, there’s a difference between what an appraiser says your home is worth and what the market is actually willing to pay. And understanding that difference can make or break your sale.

Let’s start with the appraised value. This is typically determined by a licensed appraiser who compares your home, called the subject property, to other homes in your area that have recently sold. These are known as comparable sales, and the appraiser is looking for homes that are similar in size, age, and style. But here’s the kicker: none of those homes are exactly like yours. They sold in a different season, under different market conditions, with different buyers, and probably different interest rates. One may have sold when inventory was low. Another may have had more competition. Maybe it was raining the day their buyers saw the house yes, even weather can play a role. So, while appraisals are helpful, they’re based on historic data and educated assumptions not on what buyers are doing right now.

Now let’s talk about market value. Market value answers a much more important question: “How is the market responding to your home today?” You find this out by putting the home out there with great marketing, professional photos, widespread exposure and then watching how buyers react. Are you getting showings? Are people staying in the home longer, asking questions, or giving positive feedback? Those are great signs that your price is in the right range. But if you’ve been on the market and nobody’s coming or worse, they’re coming and then ghosting you it’s a clear sign buyers are comparing your home to others and choosing something else for the price. That’s when the market is telling you loud and clear: your home is overpriced for today’s conditions.

At the end of the day, market value always wins, because that’s where the buyer and seller actually meet. You can hang onto an appraised value all day long, but if buyers aren’t willing to pay it, it’s just a number on paper. Pricing your home right from the start and adjusting if needed based on real feedback is the key to getting it sold.

Bottom line: trust the market. It speaks loud and clear if you know how to listen.