CHAPTER 6 How to Accurately Determine the Value of Your Inherited Determining the value of an inherited home is a nuanced process that goes far beyond a simple formula. It's not just about crunching numbers—it involves considering multiple factors. Many times, you might see similar homes in the same area sell for very different prices. It's essential to understand that an estimated home value may not align with what you "believe" your inherited property is worth. Recognizing this distinction can help you avoid overpricing, which is one of the most common reasons a home sits unsold on the market for months. By familiarizing yourself with real estate terms like market value, appraisal value, and assessed value, you'll be better equipped to engage in the pricing process and ultimately set the right listing price for your inherited home.
Understanding Key Real Estate Terms
Market Value: The most common definition of market value is the most likely price a property will bring in a competitive, open market under fair conditions. Simply put, it’s an estimated price a home should sell for in its local market, typically based on comparable sales in the same area—such as a specific neighborhood or suburb. Appraisal Value: This refers to the evaluation of a property's worth at a particular time by a professional appraiser. Appraised value plays a crucial role in loan underwriting, as it determines the amount a lender is willing to provide in a mortgage. For 24
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