What's my home's actual worth?
Dated: March 14 2019
Figuring out what your home is worth to todays’ buyers can be tricky. It’s not as simple as checking the balance on your retirement account. As a home seller knowing it’s worth helps in pricing it correctly when putting it on the market. No one want to price too low and miss out on $$, but pricing it too high can cause it to sit on the market and become stale. As a home buyer it is important to know the value of a home before putting an offer on it, as no one wants to overpay for their next home.
Even if you are not in the market to buy or sell at the moment, a current homeowner might be curious about the value of one of their biggest investments. By keeping track of your home’s value year after year can help you understand the current market and be prepared when you become ready to sell.
When you are in the trenches of buying and/ or selling a home, you might hear words such as appraised value, assessed value and market value. It helps to know the differences.
A professional appraiser will determine the appraised value of a home. Usually required by the mortgage lender when a buyer is financing a home purchase. The appraiser is an objective, licensed professional.
The appraiser comes up with the appraised value to assure the lender that the purchaser is not overpaying for the property. If a home receives an accepted offer of $420,000 and the appraiser values the home at $400,000 it has an effect on the bank in securing the loan. The appraiser evaluates various factors in determining the home’s value.
The assessed value is determined by your local town and is used in calculating taxes based on mill rate. Knowing your towns mill rate and the assessed value will help you calculate your property taxes In our area the accessed value is often 70% of what the town appraises the property for. The percentage can vary based on your location. The towns also reassess the values on a regular basis. The lower the assessment the lower your property taxes.
True Market Value:
True market value basically refers to the value that a buyer puts on the property. What are they willing to pay for the property? How does it compare to other homes on the market and those recently sold. A real estate agent can help you determine market value as they have hands on experience and resources to evaluate the market. Knowing your true market value is important when selling and when deciding about making upgrades and updates to your home.
Online calculators can give you an estimate on the value of your home. It is a starting point using various algorithms to calculate a range of value. You can use that to open a conversation with a Realtor. Realtors can provide a comparative market analysis of your home using current data. They use factors such as neighborhood sales, exterior and interior conditions, age, style, market trends and location.
Selling or buying in upper Fairfield, lower Litchfield and western New Haven counties? Give Sandra a call, text or email for your personal analysis.....