Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. 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 spe cifi c property and frequentl y diff ers from market value or appraisal value . Th is assessed value is used as the basis of property tax and when a property tax is levied . Th e 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; however, this does not re fl ect the home’s value. WHATS YOUR HOME WORTH The fir st step in selling your home is to understand th e diff erence between value, worth and sale price. Let’s exam each one of those to determine the factor that make th e diff erence between them. Understanding those factors allows them to be leveraged and accentuate each one according . Th ere are several ways a home’s value is derived. ONLINE HOME VALUATION Online tools will provide you with a very basic estimate of your home’s current value based on recent comparable home sales in your area using a comprehensive database. Note that the assessment is based on available data with no guarantee of accuracy and o ft en uses an algorithm that simply averages comparable sales in the geographic are a. Th ese tools might be
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