A home is most family's largest financial asset and knowing its current market value is important. Perhaps you are thinking about selling to move closer to the grandchildren, or maybe you are trying to decide if it makes sense to take that new job offer and relocate - understanding your home's value is an important part of financial and life planning.
If you are in need of a Home Valuation, Mike Reames would be happy to come to meet with you to discuss the current real estate market and the value of your home. In this rapidly changing market, it is critical to have a knowledgeable and experienced agent who is following the market changes as they happen. When you contact Reames Realty to schedule a Home Valuation consultation, rest assured that Mike Reames will be the one that meets with you and prepares your analysis.
Tax Assessment
The tax assessment value is used by your locality to levy a real estate tax on their citizens. Tax assessments are prepared by the localities tax assessors. These are professionals that maintain records and a database of all the properties and sales in an area. Assessors keep very general and broad records of your home, such as the size of your home and the number of bedrooms. Tax assessors generally never go into your home or get an opportunity to see all the upgrades or improvements you may have made.
As your neighbors sell their homes, the assessors record those transactions and create an average value for the neighborhood. Your tax assessment value is based on this average sales method. Generally, the newer the neighborhood, the more accurate the tax assessment value is to the market value of your home. All the homes are new and are generally in similar conditions. An older neighborhood has varying degrees of improvements and maintenance of properties. In a thirty-year-old subdivision, there may be homes that have never been improved and are in need of overall maintenance or there may be homeowners that have spent small fortunes maintaining and upgrading these homes throughout the years. The tax assessor can only develop an average value for the neighborhood and assign that value for each home because they don't know which homes have been improved and which homes have not.
Appraised Value
People regularly tell me they have an appraisal of their property. Many think this is the current value of their property and would like to use the appraised value as the list price when we sell their home. Appraisals are not market values. Appraisers generally work for banks/mortgage companies. A buyer finds a home that they would like to purchase and enters into a contract to buy the home. The buyer then goes to a bank or mortgage broker and asks for a loan to buy the property. The bank/mortgage company then orders an appraisal and the appraiser is chosen via a "lottery system" to evaluate the home and determine its value. The assigned appraiser is provided with a copy of the purchase contract and visits the property to conduct a detailed study of the home. This includes measuring the home's square footage, photographing the property, documenting the features and upgrades, etc. The appraiser uses all of this information to prepare the final appraisal report.
Appraisals are based on recent comparable sales. Appraisers look at similar properties that have sold in the last few months. Appraisers then make adjustments to those sales when compared to the subject property. For example, the comparable has a screened porch and the subject does not - the appraiser will make an adjustment to the subject's value because it does not have that feature.
Appraised values are based on historical sales and are very important. Appraised values are all that a bank will loan you for the property, but that is the big difference - appraised value is the bank's value for your home. It is important to mention that appraised values can be created and prepared without going to market. This is very important when settling estates or dividing property values between owners.
Market Value
The Market Value is how much a willing buyer will pay you today for your property. In today's rapidly changing market this varies day to day.