a key factor in determining how much money can be borrowed and under what conditions. For example, the loan-to-value (LTV) ratio is calculated based on the appraised value. When the LTV exceeds 80%, lenders typically require borrowers to purchase mortgage insurance, commonly known as PMI. The assessed value refers to the amount assigned by local or state governments for a specific property, often differing from the market value or appraisal value. This assessed value is the foundation for property tax assessments and when property taxes are levied. It is crucial to note that the assessed value of real property does not necessarily match its market value. Approximately 60% of properties in the U.S. are assessed at a value higher than their current market value. However, the opposite can often be true in our Sandhills region of North Carolina.
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 a piece of real estate's sale price except the price at which it sells. Houses are not identically priced cans of tuna on the grocery store shelf or shares of stock that are valued and traded daily on the stock exchange. Real estate appraisal, also known as property valuation, is the process of assessing the value of real property. This value is referred to as market value—meaning what a reasonable, willing
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