Do You Know What Your Home is Worth?
When it comes to the value of your home consider these four different perspectives of the very same house. The answers vary depending on who is asking the question and for what reason. The mindset is quite different. Learn “why you need to know” what the actual value of your home is.
Market Value – Ask Your Local Real Estate Agent
Market value is nothing more than what a buyer is willing to pay for any home. How is market value determined? The reality in any housing market is that buyers want to pay the least amount possible for a home, while a seller wants the highest and best price they can get a buyer to pay. Somewhere in between these two numbers is what a home actually sells for. Real estate agents do not determine the market value of a home, but they do provide clients with an understanding of the local market. Your real estate agent should be able to provide you with detailed information on what is and is not selling in your neighborhood, and at what price. This info will help you to set a listing price for your home. Pricing a home properly is an important step to get the home sold fast and for the highest price.
Appraised Value – Required by the lender
Paid for by the buyer, this is completed by a licensed real estate appraiser. The process involves gathering information much like a real estate agent does, but with different guidelines. Greater detail is covered to verify the accuracy of the value given to the contract price of a home. An appraisal is done independently for the bank and required for a buyer to get their mortgage. This value is extremely important for a deal to go forward when a mortgage is part of any transaction. This number reflects the value of the day it is written.
Replacement Value – Insurance Agent
Your insurance agent doesn’t use the sale price of the home you just bought to determine your policy. The insurance agent looks at what would it cost to rebuild the entire home in the event of a total loss. Building costs are constantly increasing and the home that you paid $250K for may actually cost much more than that to rebuild. The replacement cost is what the insurance company is looking to use for coverage. Even with new construction these number can vary. The insurance company bases their numbers after a home has been built. There can be cost increases that the builder did not have just one year ago. It is important to know if your policy amounts are still in check with building costs over the years. Making sure your home is properly insured.
Assessed Value – Local Tax Assessor
Property taxes are paid on your assessed home value. You will most likely be paying property taxes and school taxes based on the assessed value of your home. Most towns have a formula for calculating these numbers that can change over time.. When purchasing a home it is important to verify the taxes being paid on a home and then look to see if they are in line with what other similar homes in the area are also paying. The assessed value of a home can sometimes be overvalued. If the numbers are off it is a good idea to appeal the assessment prior to putting a home on the market. If you are purchasing a home it is good to know if an appeal was recently filed, won or denied.
The Value of Owning a Home – Priceless!
As a home owner learning about the different values given to any house is part of being an educated consumer. Seek professional services to gain as much insight as possible. Understanding these different values can help you to make the best decisions possible when it comes to buying and selling a home. Are you looking to find out the market value of your home? Call for your FREE Market Analysis now and leave the guess work out of it. A professional analysis based on recent sales, contract properties and inventory is yours for the asking. Don’t guess the answers with internet misinformation. Allow me to share my knowledge.
What is the Value of Your Newburgh NY Home?
Want to know what the current value of your home is? Six months ago is not the same as today. Value is a moving target. If you are considering selling your home I’d be glad to provide you with info and a Comparative Market Analysis.
published by: your real estate expert Janis Borgueta Hudson Valley Homes for Sale as a community service in the Hudson Valley. To receive more real estate information please subscribe to this blog. Looking to buy a new home? Search the MLS for Homes in the Hudson Valley. You can contact Janis at (845)-527-7115 or find her on Google+