When a realtor offers to provide you with a market evaluation of the value of your home it often can differ with the value an appraiser would place on your property. Why? Good question. Appraisers are looking at comparable sales and very specific tangibles such as square footage, number of bedrooms, whether or not there is a pool etc. They also have to work off sold comparables which, in some areas such as Mt. Helix, can be difficult because this area is comprised of custom homes with prices ranging from $308,000 - $2,000,000.
A realtor who knows a specific area will look at those tangible things but also factor in things that are not quantified which may be of value (or not) to potential buyers. These things could include historical significance, on-trend finishes, views of specific monuments or geographic items. For example, in East County some buyers seek out views of Mt. Helix. There could be two adjacent properties that might be equal in all tangible ways but one has a better view of Mt. Helix which could provide for a higher market evaluation but would not register as a plus on value in an appraisal. (This isn't a given but just an example.)
Appraisers also err on the side of caution thanks to the home mortgage crash of the mid-2000s. Realtors tend to look at sales trends in an area and use that data to also figure into their market evaluation. Has an area up 3 percent each month for the past year? If so, it may be realistic to think the market will continue on that tangent barring an increase in mortgage rates or something else which could impact the market in a larger way. This could then allow for a market evaluation 3 percent higher than a comparable sold last month. This is not a criteria an appraiser will figure into their computations.
Hope that clears up some of the mystery on why these two don't always match!
