WHAT IS YOUR HOME WORTH?
The first step in selling your home is knowing the difference between value, worth, and price. Let’s examine the determining factors at work. Understanding those factors allows them to be leveraged. There are several ways a home’s value is derived.
PROFESSIONAL APPRAISAL
Nothing determines the sale price of a piece of real estate but the price at which it sells. Houses are not same-priced identical cans of tuna on the grocery store shelf or shares of stock valued and traded every day on the stock exchange. Real estate appraisal (“ property valuation ”) is the process of developing a perspective of value for real property. This is the Market Value — i.e., what a willing, reasonable buyer would pay for the property to a willing, reasonable seller. Real estate transactions generally require assessments because they happen infrequently and every real property is unique in features and characteristics.
What you should know about home appraisals?
Financial institutions primarily hire home appraisals when involved in lending money for property purchases or refinancing to comply with regulatory requirements and ensure sound lending decisions based on the true value of the properties. Appraisers consider a variety of comparable features when evaluating the value of a property. This list helps appraisers determine the market value of a property by comparing it to similar properties and adjustments for any differences.
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