Why Your Appraisal Does Not Match Today’s Market

By Gregg Tepper

I have been married to my wonderful wife Letha for 29 years. We have 3 children: Max, Alexander and Charlotte. I have been a licensed Realtor in the New Orleans area for 20 years and am the Operator of The Tepper Group with Keller Williams Realty in Mandeville. Our team services the entire New Orleans and Baton Rouge metro areas. Our team of partners has well over 40 years of experience. In 2024 we helped 132 families buy, sell and lease homes, land and commercial investments.

Most people think a home priced below appraisal value should sell fast. It feels like a built-in deal. Yet many of these homes sit on the market with no activity. The reason is simple: Appraisal value and market value are not the same thing.

Today, I’m going to explain the difference so you can avoid pricing mistakes and use the latest housing data in your area to your advantage.

Why appraisal values look backward. An appraisal focuses on past sales. Appraisers study closed transactions from the last six to twelve months. If there are not enough good matches, they may reach even further back or use expired listings to justify a number.

Appraisals value essentials such as roofs, windows, wiring, plumbing, and other core systems. These items matter, but they move slowly and create a value picture based on what happened, not what is happening today. Appraisal value is the steak, not the sizzle.

Why market value looks at today’s competition. Market value starts with one question. What are buyers choosing between right now? A professional market analysis examines active listings, comparable homes, current trends, and the pending ratio. If many homes look like yours, buyers have more choices and can pressure your price down. If inventory is low, your price rises. Pending sales show where demand is today.

A high pending ratio means strong buyer activity. A low pending ratio means buyers are selective. These are real-time signals that shape true market value.

Why the sizzle matters to buyers. Buyers care about what they see. They can overlook a new roof if the home still has pink carpet, outdated flooring, or tired paint. Updated kitchens, clean bathrooms, and simple staging help buyers picture themselves in a space. Even with strong mechanical systems, poor presentation can hurt your price. Market value reflects both the steak and the sizzle because buyers decide based on emotion and competition.

How buyers spot opportunities. When you see a home priced below appraisal value and still sitting unsold, that usually means one thing. It is overpriced. The appraisal number does not reflect what buyers are willing to pay today. Sellers who rely solely on the appraisal often realize too late that it does not reflect the true market value. This is where buyers can get a great deal. When a seller finally adjusts their expectations, a serious buyer can negotiate a strong price.

How sellers protect their bottom line. Sellers don’t need to pay for an appraisal before listing. That number cannot tell you how today’s buyers will respond. What matters is a strong market analysis that shows competition, pending ratios, and current trends. Price your home based on what buyers are choosing right now.

Homes priced correctly sell faster and closer to the list price with fewer headaches. Simple updates, fresh paint, clean presentation, and strong curb appeal will help your home stand out and create a better first impression.

If you want clarity on appraisal value versus market value, or if you need help pricing your home, call (985)-218-5445 or email TGroup@kw.com. My team is always here to help you make confident decisions.