time. Appraisals are crucial for lenders, as they determine the loan-to-value ratio (LTV) and may influence whether mortgage insurance is required. • Assessed Value: This is the value assigned by local or state governments for property tax purposes. It often differs from both market and appraisal values, with approximately 60% of U.S. properties assessed higher than their actual market value. By familiarizing yourself with these terms, you’ll be better equipped to set a realistic and competitive listing price.
Determining Your Home’s Value
The first step in selling your home is understanding the distinction between value, worth, and price. Several methods can help determine your home’s value:
1. Professional Appraisal
Real estate is not like stocks or grocery items with standard pricing. Every property is unique, and professional appraisals play a vital role in determining a home's value. An appraiser evaluates various factors, such as:
• Dwelling type (e.g., one-story, two-story) • Design and materials used • Recent improvements • Comparable sales in the area • Location and neighborhood characteristics • Age and condition of the property • Size and depreciation
A qualified appraiser provides an unbiased assessment that serves 7
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