I had a client once who didn’t understand why his house had multiple appraised values. He had hired an appraiser to come out and tell him what his house was worth before deciding to place it on the market. When he called me in to list his house, I did my research and provided him with a comparable market analysis which averaged an amount much different than his appraised value, and when we got a ratified contract, the buyers appraisal showed yet another value. So he wanted to know what the deal was with the different amounts.

Here’s the thing: appraisals are really opinions… educated and objective opinions, but opinions none the less. Appraisals are used for different purposes and because of that, can sometimes vary. When a home is bought or sold, appraisals are normally based on the market selling price. For tax purposes, the value is based on a lot of factors specific to to the jurisdiction the house is in. Insurance values are based on how much it costs to replace the home, factoring in the cost of materials.

So it is possible to have multiple appraisal values, but if you’re thinking about selling your home, save yourself a few hundred dollars and ask a real estate agent to provide you a current and detailed report of the market value in your neighborhood.