Understanding the Difference Between Appraised Value and Buyer Perception
One of the most common questions I get from friends and clients is: “What do you think my house is worth?”
And my answer is always the same:
“Are you asking what it’s worth on paper—or what I think a buyer would actually pay?”
Because those are often two very different numbers.
The Appraised Value vs. Buyer Value
The appraised value is useful for things like refinancing or insurance. It’s what a licensed
appraiser determines based on square footage, comps, and general condition. It’s rooted in
formulas and data—and while that’s helpful for banks, it doesn’t always reflect how real buyers
think.
Buyers, on the other hand, care about things you won’t find on an appraisal report:
A choppy or awkward layout
Small dining rooms or dark interiors
Homes backing up to busy roads
Outdated systems (like a 30-year-old roof)
Poor maintenance or wear and tear
Lack of curb appeal or privacy
These are real-world factors that can have a big impact on how buyers feel about your
home—and ultimately, how much they’re willing to pay.
A Word About Zestimates
Zillow’s Zestimate? It’s generated by an algorithm. And while it can offer a ballpark idea, it
doesn’t know if your HVAC is on its last leg or if your kitchen feels closed off and dated. It also
doesn’t understand nuance—like the difference between two homes with similar square footage but vastly different functionality or finishes.
The Real Value Comes From the Market
When you’re getting ready to sell, talk to an experienced agent you trust. A knowledgeable
realtor won’t just quote you a number—they’ll evaluate your home like a buyer would. They’ll
factor in condition, layout, location, current demand, and local trends to help price your home strategically.
Because at the end of the day, the most important number isn’t what your home should be
worth… it’s what a buyer is willing to pay.
Want to chat about your home’s true market value? I’m always happy to help.
Jimmy Baron
Want to know more?
404-234-2033
Jimmy Baron & Associates
Keller Williams Realty First Atlanta
