What is the Difference Between Value and Worth?

What is the Difference Between Value and Worth?

Swimming pools don't increase appraisals in Edmonton as much as you might think

One of the first questions most asked of licensed appraisers is, “What is my house worth?” After a site visit and research on the property to identify square footage, neighborhood comparisons and other metrics,  the appraiser responds with a dollar figure which is called a “valuation”.  This valuation is an objective opinion of the value of the building based on the data gathered and weighed by a trained, experienced appraiser. But the figure which was arrived at isn’t the home’s worth.

For What it’s Worth

Even though the value assigned to the home by the appraiser is recognized by legal and financial institutions as being a credible figure, worth is a number much more in the eye of the beholder. A great example is found on our Renovation Calculator found here. This convenient tool shows, for instance, the approximate cost of putting in a swimming pool, versus the return which one might expect from such a renovation.

The Pool Paradox

The guide shows the swimming pool surprisingly made little difference in the new value of the home. This is because not everyone wants the danger, cost and upkeep of an indoor pool. For those, though, who have always yearned to own a pool, that longing can increase the worth of the property higher than the value… but only for swimming fans. Worth is subjective, therefore, and changes from individual to individual based on each person’s unique system of values. The appraiser’s valuation, on the other hand, is an objective figure that doesn’t change from one legal or financial institution to another.

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