Appraised Market Value, Asking Price and Sale Price: What Is the Difference?
Updated: Oct 23
An appraisal can develop an opinion of market value. Appraised value and market value should therefore not be presented as inherently competing concepts. The report should identify the value definition, property interest, intended use and effective date.
An appraised market value is an opinion
The appraiser analyses relevant property and market evidence and explains the conclusion within the assignment's scope. The opinion is tied to its effective date and stated assumptions. It is not a promise that the next transaction will occur at that amount.
An asking price is a marketing decision
The owner may choose an asking price for strategic or personal reasons. A listing price alone does not establish market value. Time on market and subsequent changes can provide context but still need interpretation.
A sale price records a transaction
The agreed price reflects the terms and circumstances of that particular transaction. An appraiser evaluates whether a sale is relevant evidence for the assignment rather than assuming every price represents the same value basis.
Assessed value serves a different purpose
A property-tax assessment is prepared under the applicable assessment system and valuation date. It may differ from a current market appraisal without either figure answering the same question.
Before relying on a number, ask what it measures, as of when and for whom. Tell the appraiser the decision you need the report to support.
Discuss Your Appraisal Requirements
Cade Appraisals Inc. provides independent property appraisal services across Niagara, Hamilton, Halton, Brant, Haldimand and Norfolk. Appraisal enquiries: Laura Cade, AACI, P.App. Discuss the property, intended use, effective date and timing before ordering.
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