Appraised value is a crucial factor in loan underwriting and determines how much money may be borrowed and under what terms. For example, the Loan to Value (LTV) ratio is based on the appraised value. Where LTV is greater than 80%, the lender generally will require the borrower to buy mortgage insurance. Assessed value is the amount local or state government has designated for a specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis of property tax and when a property tax is levied. The assessed value of real property is not necessarily equal to the property’s market value. Approximately 60% of U.S. properties are assessed higher than their current value.
""What's the current value of your lovely home?"
When selling your home, it is crucial to comprehend the distinction between value, worth, and price. We must consider the determining factors and how to utilize them. There are various methods to determine the value of a home. One important method is through a professional appraisal. It's important to note that the sale price of real estate is ultimately determined by the price at which it sells. Unlike groceries or stocks, houses are not priced in the same way. 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. An appraisal helps with various decision points. The seller can use it as a basis for pricing, the buyer can use it as a gauge on
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