Have you ever wondered why the market value of your home can be different from the value your bank appraises it at? What value is being used to set and/or increase your property tax bill? It’s not difficult to be confused about the various assessments being used in the home buying and selling process, but knowing a home’s value or worth in the real estate market will help you get a fair price.

There are generally three ways to determine the value of a home: through a Comparative Market Analysis, a professional appraisal or an assessed valuation.

A Comparative Market Analysis, performed by BILL BAILEY REALTY  can determine a reasonable listing price for your home. In preparing the Analysis, We will consider a number of factors including the home’s size, age, location, acreage and amenities.  We will also research the price of other homes currently for sale that have recently sold or expired in your area.  All of these details are taken into consideration before presenting you with the results of our work, and then we take time to explain what this all means to YOU.

An appraiser (most frequently used by a lender) determines the market value of your home by also looking at similar properties in the area and comparing them with others that have recently sold and that are on the market. The appraiser is licensed and will charge a fee for their services. Lenders almost always require a professional appraisal upon which to base your loan amount.

Local governments also perform independent appraisals to determine your home’s assessed value, available on public record, so that your property is taxed fairly.

When you compare your Agent’s Comparative Market Analysis and the appraised values of your home they may not match. The "market price" as determined by the CMA will consider the supply and demand for homes in your area. The sale price can be much different from the appraised value, especially if the demand is great and there are multiple offers on the home.

Also, the real estate market is constantly changing. A home that was worth $150,000 last year may be worth considerably more this year and possibly more the year after. Meanwhile, all city and county property assessments are assigned an effective date, valid for that particular point in time. The more time that has passed since the appraisal, the greater the possibility for disparity in the values.

Please feel free to call BILL BAILEY REALTY  without obligation, for a Comparative Market Analysis of your home. You most likely know the value of your other investments, it’s probably a good time for knowing the value of the property you own.