Today we're going to talk about the differences between market value, assessed value, and appraised value. These different values can cause confusion when it comes to pricing your home, so it's important to know what each of them are.
Market value is what a home will sell for when it's reasonably exposed to the market. That number can vary, depending on timing, home inventory, and the motivation of buyers and sellers. Market value is based on current market trends.
Assessed value is the amount that the County Assessor's office puts on the home based on their estimate of what the home value is for taxation purposes. It's not uncommon for assessments to be nowhere close to the market value, but since it's usually lower, it doesn't matter.You're not going to call the Assessor and ask for a higher assessed value so you can pay higher taxes.
The appraised value is done on the bank's behalf in order to prove that the collateral securing the mortgage is enough to cover the risk. An appraiser looks at square footage, the number of bedrooms, and the number of bathrooms. Updates and features of the home don't necessarily matter to the appraiser. As the market improves in Central Iowa, the appraisals can come in a little low from time to time, as the appraisal is based on old information. That's good news for buyers, because they can perhaps negotiate a lower price on the home.
We look at all these factors during the home buying process. If you have any questions, give us a call or send us an email. We look forward to hearing from you!
No comments :
Post a Comment