The value of your property can be determined several different ways and by several different entities.  This article briefly describes how you might place a numeric value on your home.

What is the difference between a home’s assessed value and its market value?  This is a common question both home buyers and sellers often have.  They see an annual tax valuation notice and are concerned because the assessed value is usually quite different than their perceived home value.

CMA or BO:  A comparative Market Analysis, AKA Brokers Opinion, is a licensed Real Estate Brokers best “guess” of a properties current market value.  It is based on an analysis of similar properties that have recently sold.  Current market trends, speed of sales, and experience all help the broker determine a recommended sales price.  Some brokers may factor in things like needed repairs while others might ignore these items.

Market Price:  This is the price that a property will sell for right now.  It is ultimately determined by the price a buyer pays when the house is sold.  It is often estimated by real-estate brokers based on other comparable recent sales, property condition, improvements, upgrades, etc.

Assessed Value:  This publicly available number is calculated by the county or city and is usually used for tax purposes.  It is often quite different from the market value or lender appraisal.  Homeowners like to see a low number because that means they will pay fewer taxes.  The county also does not know about remodels, upgraded appliances, new countertops, etc.  The county generally does not do a walk-through – except, possibly when the house is first built.

Appraised Value:   An appraisal is performed by a licensed individual.  They visit the house and take detailed notes on size, sq. ft., construction, condition, etc.  They analyze recent sales of comparable homes and they also create an estimated cost to build the house from scratch.  An appraisal is the most accurate valuation method and is therefore the one used by most lenders.

WHAT IS THE BOTTOM LINE:   How much is the property really worth?  At the end of the day, it’s worth what someone will pay.   A quality Agent will educate you to best help you decide on price.  You, the homeowner, always have the final say.  After all, it is YOUR HOUSE!!!

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