CHAPTER 6 Determining the Value of an Inherited Home ed Home
Determining the Value of an Inherited Home
Valuing an inherited home is not an exact science. Many factors influence a property's worth, and similar homes can sell for very different prices. Overpricing is a common mistake that can lead to extended market times and financial losses. Understanding key real estate terms—market value, appraisal value, and assessed value—is essential: • Market Value: The most probable price a property will sell for in an open, competitive market. • Appraisal Value: A professional appraiser’s evaluation of a property’s worth at a given time, often used in loan underwriting. • Assessed Value: The government’s valuation for tax purposes, which may differ significantly from market or appraisal value. How to Determine Your Inherited Home’s Worth Knowing the distinction between value, worth, and price is crucial. Several methods can help establish an inherited property’s market value: 1. Online Home Valuation Tools Online resources provide a rough estimate based on comparable sales data. While convenient, these tools lack precision, as they do not account for property-specific details, location nuances, or market trends. 22
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