What is Your Home's Value?

Have you ever wondered why the market value of your home differs from what your bank appraises it as? And what value is being used to set and/or increase your property tax bill? It's easy to be confused about the different valuations 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 (CMA), can determine a reasonable listing price for your home. When I prepare a CMA, I consider a number of factors including the home's size, age, location and amenities. I also research the list prices of properties that are currently for sale, have recently sold or expired in your neighborhood.

An appraiser (used by a lender) determines the market value of your home by looking at the supply and demand of like properties in the area, comparing your property with others that have recently sold, determining the amount of money it would take to replace your home at current material and labor costs and/or determining how much income a property would produce (this last approach is used more often for rental property, apartments and commercial property). Lenders frequently 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 comparing the CMA and the appraised values, don't be surprised if they do not match. There are a number of reasons that these differences occur.

The "market value" determined by the appraisal can be different from the "market price" determined through my CMA. In essence, the appraisal amount reflects the cost of replacing your home. But the goal of the CMA is to determine a price that someone will pay for your home. The sale price can be much different from the appraisal value, especially if there are multiple offers on the home.

Also, the real estate market is constantly changing. A home that was worth $100,000 last year may be worth $120,000 this year and possibly more next year. 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. For example, some governments appraise properties annually; others appraise properties once every four years.

I can help you determine the value of your home by researching its appraisal history and performing a Competitive Market Analysis. I can also recommend professional appraisers. Please call me to discuss the current real estate conditions that affect the market price of your home.

Credit Challenged?

Guaranteed Results

Get Your Real Estate License

Testimonials

"Thank you for all your help and your patience.  We love the house!  We're so excited!"

         -Laura Rodriguez

"Por ejemplo!"

         -Felipe Rodriguez

"...we are very thankful that Richard was recommended to us. He was very attentive to what we were looking for..." 

         -Keilah and Martha Reyes

_____

"Richard went above and beyond the call of duty when he sold our properties. He kept us informed and at ease every step of the way. We will definitely recommend him to family and friends."

         -Doyle and Novel Dickens

_____

"Richard walked us through every step in our purchase and still is there if any other question arise. We would recommend him to everyone for buying or selling a home."

         -Don and Mary Williamson