example, if the Loan-to-Value (LTV) ratio exceeds 80%, mortgage insurance may be required.
Assessed Value: This value is determined by local or state government agencies for taxation purposes. It often differs from the market or appraised value. In fact, about 60% of U.S. properties are assessed higher than their actual market value, which may not reflect the true selling price of a home.
What's Your Inherited Home Really Worth?
When selling an inherited property, especially if you're unfamiliar with the market, it’s important to understand the difference between value, worth, and price. Knowing these distinctions allows you to navigate the selling process with greater confidence. Here are the most common ways a home's value is derived:
Online Home Valuation Tools
The easiest and most accessible way to begin estimating the value of your inherited home is through online tools. These free services pull data from a vast database of recent comparable home sales in your area. While these tools provide a quick, preliminary estimate, keep in mind that their accuracy can vary. Algorithms often use average sale prices of similar homes in the neighborhood, but they don’t account for nuances like location or local market trends. Use this as a ballpark figure rather than an exact value.
Professional Appraisal
Unlike online tools, a professional appraisal offers a more detailed and reliable estimate of your home's value. An appraisal involves a thorough inspection of the property by a licensed appraiser who will consider multiple factors:
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