Example of Varied Home Valuations:
A buyer was interested in a home with an asking price of $620,00. Online valuations determine the house is worth $640,000. Based on that valuation, the buyer accepts the selling price. When a professional appraisal comes in at $600,000 and existing tax records assess the home at $500,000, why are the values so different? Listing the home for $620,000 is the price the home would sell in a reasonable amount of time. why wouldn't the appraised value be whatever the buyer was willing to pay? An interested buyer does not reflect a typical purchase. The fact they paid $620,000 does not necessarily establish the true value of the home. Certain factors may weigh in such as location of undesirable businesses near the property. Online valuations cannot consider the condition of the property or the qualities of the neighborhood. Since an assessed home value is for taxing purposes only, it can be more or much less than market value. Ideally, they should be the same, but usually they are not. It is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home selling prices, the assessor will take all of these things into consideration when appraising a home. Location to industry, high traffic or potential development will also affect his appraisal.
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