Three Main Types of Home Valuation
A home’s value is affected by several factors: your neighborhood and general location of your home, the size of your property, the condition of your home’s structure, and the current market trends in your area. Home valuations vary based on the type of home valuation; there are three main types:
Assessed Value
The assessed value of your home is what your property taxes are based on and is determined by your local tax assessors. Although the value of your home may rise, it is typically lower than what your home could sell for.
Appraised Value
The appraised value is the amount assigned by your home appraiser based on several factors including size, location, condition, upgrades, and the price that similar homes near you have sold for. The home appraisal is required by lenders before they approve the loan.
Fair Market Value
Fair market value is the price that the home buyer is willing to pay for your home. This is also dependent on many of the same factors as the home appraisal, as well as current market conditions in your area. For an estimate on your home’s value, use our simple Home Valuation Tool.
Our team understands the complexities of home valuation when you are buying or selling a home and we’ll advise you on the best solution for your situation. We’d love to help you; call HomeSource Realty today at (828) 944-4429.