What’s the difference between “tax value” and “insured value” on your home? How does “appraised value” compare to a “Comparative Market Analysis”?
Your lender is interested in the “insured” value, or the amount it would take to rebuild your home in case of a catastrophic loss. Insured value usually does not include the land, yet may be higher than the home is worth on the open market.
The local taxing authority assesses and periodically revises tax values using a preset formula. The formula is applied equally to all properties in a given area, supposedly resulting in a fair and equitable distribution of the tax burden. The “tax” value may not accurately reflect the actual fair market value of your home.
“Appraised” value is determined by one of two methods that indicate a property’s true “fair market value.” Certified appraisers compare the features and amenities of a home to others that have recently sold. The result is a good benchmark upon which to base a home’s sale price.
A “Comparative Market Analysis” is provided by a real estate professional. This method compares a home to others that have recently sold and may include homes that are currently on the market.
When selling make sure you receive a Comparative Market Analysis. Once the figures are in, price your home correctly for a fast sale at a great price.