The appraised value of a house is a certified appraiser's opinion of what it's worth, while the market price is also defined as the price at which the home may sell within a reasonable amount of time. That might actually be higher or lower, depending on current market conditions. Appraisals are performed for lenders. The purpose is to justify the sales price so that the lender feels they are making a solid investment since the property is collateral for the loan. On appraisals, most weight is given to historical data—sales that have closed in the last three or four months. They also consider if the local market and neighborhood are appreciating or in a decline. Appraisers try to make allowances, but because they have rules and guidelines to follow, there are times when they cannot—especially in dealing with multiple bidding situations and in areas where there are fewer recent sales—both of these situations could potentially be different from what the past data indicates. However, the appraisal will be based on known data.