Why Your CV Isn't Necessarily Your Home's Value

In a recent video, Diego addressed one of the most common questions homeowners ask before selling: What's the difference between a CV, market value, and an appraisal?

These three numbers are often confused, yet they serve completely different purposes. Understanding how each one works can help you make better decisions when preparing to sell your property.

What Is a CV?

CV stands for Capital Value, sometimes referred to as a council valuation. This figure is primarily used by the council to help determine rates. While many homeowners look at their CV as an indication of value, it's important to understand that it was never designed to predict what a buyer will pay today.

Depending on when it was last assessed, a CV may be significantly higher or lower than the current market value. That's why relying solely on your CV can create unrealistic expectations when it comes time to sell.

What Is Market Value?

Market value is simply what buyers are willing to pay for your property in the current market. Unlike a CV, market value changes constantly. Interest rates, buyer demand, available stock, and economic conditions can all influence what someone is prepared to pay.

At the end of the day, the market determines value, not the council.

What Is an Appraisal?

An appraisal is an estimate provided by a real estate agent. When preparing an appraisal, an agent analyses recent comparable sales, current competition, buyer activity, and local market conditions to determine where your property is likely to sit in today's market.

This is why most homeowners should obtain appraisals from multiple reputable agents before making any decisions. Comparing appraisals allows you to see whether different agents are reaching similar conclusions based on the same market evidence.

Why These Numbers Don't Always Match

One of the biggest misconceptions among sellers is assuming that CV, market value, and appraisal should all be identical.

In reality, that's often not the case. A property's CV may have been calculated years ago, while market conditions may have changed significantly since then. Likewise, an appraisal may differ from a CV because it reflects today's market rather than historic council data.

The most important question is whether the appraisal reflects what buyers are likely to pay right now.

The Real Risk for Sellers

The biggest danger isn't that the numbers are different. The real risk is receiving an appraisal that's based on optimism rather than market evidence.

As Diego explains, some agents tell homeowners exactly what they want to hear. The problem comes later when the market fails to support that price expectation. That's often why properties stay on the market longer than expected or fail to sell altogether.

A good appraisal should be grounded in reality and supported by recent comparable sales.

Focus on Market Value

While CVs and appraisals can provide useful context, market value remains the most important number. A strong agent should be able to provide an appraisal that closely reflects what today's buyers are willing to pay.

Understanding the difference between these figures can help you set realistic expectations, attract genuine buyer interest, and achieve a smoother sale.