Wondering “How Much Is My Home Worth”?
The assessed value of a property is simply the value applied to the subject property by the local government to determine the owner’s property tax. The assessed value is NOT an accurate tool for determining the value of a property. In some areas the assessed value is based on a percentage of the market value. For example, if the market value of the home was $100,000 at the time of the assessment, and the local government assesses properties in that area at 80% of the market value, then the assessment on that property would be $80,000.
Appraised Value
Appraised value is determined by a certified appraiser’s unbiased opinion of value based on a physical inspection of the property. An appraiser looks at the physical features of the property such as the amount of land, the size, style and condition of the home, as well as current market conditions to determine his or her opinion of value. In residential real estate an appraisal is typically used by someone who needs an accurate assessment to support a predetermined price or value on a property. For example, a bank will use an appraisal to justify giving a loan on a property being sold. The appraised value is NOT the market value, meaning it’s not necessarily the price the home should or will sell for on the open market. There are many other factors to consider that determine what someone is actually willing to pay.
Fair Market Values of Your Home
Market value can be defined as the most probable price a property should sell for in an open and competitive market within a reasonable amount of time. Finding the market value is the best approach to establishing a good asking price. The best way to find market value is to do a comparable market Analysis (CMA) of the property, which means to research comparable sales. For example, if in 6 months 5 similar home in the same area or neighborhood sold in the range of $200,000 -$225,000, a 6th similar home will likely sell somewhere within that range, therefore determining its market value. Of course, every home is unique. Some are older, some are newer. Some need work and some are perfect. All these things need to be considered when determining a good asking price, but looking at the comparable sales gives you a great place to start.
Realtors at Horning Farm Agency are members of the Bight MLS system, giving us access to thousands of detailed listings in Lancaster, Berks, Chester and surrounding counties. Our realtors have the tools and skill set necessary to help you find the right asking price for your home. Call us today for a FREE CMA of your home!
