The short answer
Appraised value is a licensed appraiser's supported opinion of value, produced for a lender and grounded in closed sales. Market value is what a willing buyer actually pays right now. They usually land close together, but competition, cash offers, and unique features can push market value above what an appraiser will support.
- Appraisal audience
- The lender
- Market value set by
- Buyers
- Based on
- Closed sales
- Gap matters when
- Financing
01
Two different questions
The appraiser asks whether the contract price is defensible collateral. The market asks what someone will pay today. In a fast-rising market the appraiser is looking backward at closed data while buyers are bidding forward, which is exactly when a gap appears.
02
Where they diverge
| Situation | Effect | Who absorbs it |
|---|---|---|
| Bidding war | Market above appraisal | Buyer, in cash |
| Rapid price growth | Comps lag the market | Negotiated |
| Unique view or waterfront | Hard to support with comps | Often the buyer |
| Heavy custom finishes | Limited comp credit | Seller |
| Declining segment | Appraisal above offers | Seller |
03
What happens when the appraisal is low
- The buyer brings the difference in cash
- The seller reduces the price to the appraised value
- The parties split the gap
- The buyer requests a reconsideration of value with better comps
- The buyer cancels under a financing or appraisal contingency
04
Also not the same: assessed value
Your county's assessed value drives property tax, not price, and Florida's homestead limits can hold it well below market. Never use a tax assessment to set a list price or an offer.
Understanding both numbers before you sign keeps a deal alive later, which is one reason sellers lean on established realty in Hollywood, FL to anticipate appraisal risk at the offer stage instead of the week before closing.
The same rules apply for clients across Emerald Hills and Fort Lauderdale and the surrounding South Florida communities.