Key Differences Between Appraisal and a Market Analysis

By Doug Cary

Doug Cary has been selling real estate in Davis County since 2005. He is a 2nd generation top producing Real Estate Agent.

Homeowners frequently approach real estate professionals with a common query: “Can you conduct an appraisal on my property?” In response, real estate agents often find themselves explaining the difference between an appraisal and a market analysis.

An appraisal is a formal report prepared by a licensed appraiser. Its primary objective is to justify a property’s value to a bank, typically in the context of securing a loan. This meticulous process, costing around $700, relies heavily on past sales data to determine the property’s worth.

In contrast, a market analysis is a service offered by real estate agents. It involves a comprehensive examination of the current market conditions to estimate a property’s potential selling price. This analysis considers factors such as recent sales, competition in the market, pricing strategies, and pending sales.

Real estate agents emphasize that a market analysis goes beyond the generic estimates found on online platforms. Instead, it offers a detailed evaluation based on the property’s unique characteristics and the current market landscape.

Given that market analyses are a complimentary service provided by agents, the quality of these assessments can vary. Homeowners should seek out experienced and knowledgeable agents who are actively engaged in the market and can provide accurate insights.

If you want to know exactly what your home is worth, please call or email me. Whether it’s for guidance on pricing strategies or obtaining a detailed assessment, homeowners can benefit from the expertise of seasoned professionals in the real estate industry.