The most-used definition of “market value” is “the most probable price a property should bring in a competitive, open market under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally confined to a specific region such as a suburb or neighborhood. “Appraisal value” is based on “an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser.” Appraised value is an important 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 will generally require the borrower to buy mortgage insurance. “Assessed value” is the amount local or state government has declared for a specific property and frequently differs from market value or appraisal value. This assessed value is used as the basis for if a property tax is levied and, if so, how much that tax will be. The 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, though this does not reflect what the homes actually sell for.
WHAT IS YOUR INHERITED H UR INHERITED HOME WORTH?
The first step in selling your inherited property, which may be in a market with which you are not familiar, 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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