Retail (Appraised Value) Vs. Fair Market Value

What is the difference between these two? I am having a hard time differentiating between the two of them.

Any help is gladly appreciated! cool grin

Comments(3)

  • rajwarrior22nd April, 2003

    Appraised value is the value of a property as applied by a licensed appraiser. While it is supposed to be the FMV, appraisers will usually adjust numbers in one direction or another, depending what their customer wants. Example, Refi appraisals will ALWAYS be higher than FMV because the bank wants you to borrow as much as you can, while new purchases will almost always appraise for the sale price, regardless of FMV. Appraisals for the same property can vary greatly because the appraiser picks and chooses his comps.
    The Fair Market Value(FMV) is what someone would be willing to pay for the property, usually within a 6 mo period. To get an idea of FMV, find 2-3 like properties, preferably in the same neighborhood, that have sold recently, and compare them to your property.

    Roger

  • TheShortSalePro22nd April, 2003

    Roger, it's sad, but true. Your reply was right on the money. That's why my Short Sale Proposals are always value oriented.

    It usually isn't too difficult to launch a credible dispute.

  • eternaldragon23rd April, 2003

    Thank you Roger. I appreciate your Insight!!!

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