market, i.e., its geographical area, generally an area such as a suburb or neighborhood. This opinion is as objective as it can be, when determined by a real estate professional and is calculated by a detailed review of the sold prices for similar properties in the same location. Condition and amenities are also a factor in determining the price. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. Generally an appraisal is a secondary check in the value of a property in an attemtp to protect the lender from over-lending. 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, because there is more risk for the lender. Assessed value is the amount local or state government has designated for 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. Statistically properties can be assessed higher than their current value, and in some cases, they are even assessed lower.
SO, WHAT IS YOUR HOME REALLY 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.
ONLINE HOME VALUATION
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