Appraised value vs market value vs selling price: what’s the difference?

Market value is what a property should sell for between a willing buyer and seller under normal conditions. Appraised value is a licensed appraiser’s documented estimate of that market value on a specific date. The selling price is what a property actually sells for, which can land above or below both, depending on negotiation, urgency, and market conditions. In short: market value is the concept, appraised value is the professional estimate of it, and selling price is the real-world result.

By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Licensed Real Estate Broker No. 33179 · Last updated July 2026

Market value: the benchmark

Market value is a defined idea, not a single fixed number. It is the most probable price a property would fetch in an open, competitive market, with both parties acting knowledgeably and without pressure, assuming a reasonable exposure time and normal financing. Everything else is measured against it.

Appraised value: the professional estimate

Appraised value is what a licensed real estate appraiser in the Philippines concludes market value to be, backed by inspection, comparable sales, and recognised valuation methods, and tied to an effective date. It is the figure banks, the BIR, and courts rely on precisely because it is documented and defensible rather than an opinion or a hope. Two honest appraisals of the same property should land close together.

Selling price: what actually happens

The selling price is the number on the signed deed. It can differ from appraised value for real reasons: a motivated seller who needs a fast sale may accept less, a bidding situation may push it higher, or a buyer may simply overpay. A wide gap between selling price and appraised value is worth understanding rather than ignoring, especially for a bank loan, where the lender usually lends against the lower of the two.

Which number matters for you

If you are borrowing, the appraised value drives how much a bank will lend. If you are settling an estate or paying tax, the appraised value and the BIR’s figures matter most. If you are selling, market value guides your asking price and the selling price is what you negotiate to. For the tax side of this, see zonal value vs fair market value, and to make sense of the appraiser’s figure, learn how to read a property appraisal report.

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