CHAPTER 6 Determining the Value of an Inherited Home ed Home
There are multiple ways to determine the value of an inherited home. It is not a simple formula, nor an entirely mathematical one. Many elements factor into the decision. You often see similar and similarly situated houses sell for very different prices. A calculated home value is not necessarily what you believe your inherited home is worth. Recognizing this helps avoid overpricing, one of the most common reasons for a home to spend months languishing unsold on the market. Familiarity with the real estate terms market value, appraisal value, and assessed value can save you a lot of disappointment and frustration and allow you to more meaningfully engage in setting a home’s listing price. The most-used definition of “market value” is “the most probable price a property should bring in a competitive, open market under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally confined to a specific region such as a suburb or neighborhood. “Appraisal value” is based on “an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser.” Appraised value is an important factor in loan underwriting and determines how much money may be 34
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