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Have you ever wondered why the market value of your home
can be different from the value your bank appraises it at?
What value is being used to set and/or increase your property
tax bill? It’s not difficult to be confused about the
various assessments being used in the home buying and selling
process, but knowing a home’s value or worth in the real
estate market will help you get a fair price.
There are generally three ways to determine the value of a
home: through a Comparative Market Analysis, a professional
appraisal or an assessed valuation.
A Comparative Market Analysis, performed by Diana Clark
can determine a reasonable listing price for your home. In
preparing the Analysis, Diana will consider a number of factors
including the home’s size, age, location, acreage and
amenities. She will also research the price of other homes
currently for sale that have recently sold or expired in your
area. Diana takes all of these details into consideration
before presenting you with the results of her work, and then
take time to explain what this all means to YOU.
An appraiser (most frequently used by a lender) determines
the market value of your home by also looking at similar properties
in the area and comparing them with others that have recently
sold and that are on the market. The appraiser is licensed
and will charge a fee for their services. Lenders almost always
require a professional appraisal upon which to base your loan
amount.
Local governments also perform independent appraisals to determine
your home’s assessed value, available on public record,
so that your property is taxed fairly.
When you compare your Agent’s Comparative Market Analysis
and the appraised values of your home they may not match.
The "market price" as determined by the CMA will
consider the supply and demand for homes in your area. The
sale price can be much different from the appraised value,
especially if the demand is great and there are multiple offers
on the home.
Also, the real estate market is constantly changing. A home
that was worth $150,000 last year may be worth considerably
more this year and possibly more the year after. Meanwhile,
all city and county property assessments are assigned an effective
date, valid for that particular point in time. The more time
that has passed since the appraisal, the greater the possibility
for disparity in the values.
Please feel free to call Diana Clark, without obligation,
for a Comparative Market Analysis of your home. You most likely
know the value of your other investments, it’s probably
a good time for knowing the value of the property you own.
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