What is Your Property Value?

Have you ever wondered why the market value of your property may differ from what your bank appraises it? And why is that value different on your property tax bill? It's easy to be confused about the different valuations being used in the buying and selling process, but knowing a properties 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 property: through a Comparative Market Analysis, a professional appraisal or an assessed valuation. A Comparative Market Analysis (CMA), performed by an experienced agent, can determine a reasonable listing price for your property. The properties used for this comparison are listed for sale, have a ratified offer pending and those that were recently sold. The analysis includes the properties that have the most features in common with yours.

An appraiser, used by a lender, determines the value of your property by looking at the supply and demand of like properties in the area, comparing your property with others that have recently sold, determining the amount of money it would take to replace your home at current material. Labor costs and determining how much income a property would produce is used for rental property, apartments and commercial property. Lenders frequently require a professional appraisal upon which to base your loan amount.

Local governments also perform independent appraisals to determine your properties assessed value, which are available on public record, so that your property is taxed fairly.

When comparing the CMA and the appraised values, don't be surprised if they do not match. There are a number of reasons that these differences occur.

The "market value" determined by the appraisal can be different from the "market price" determined through a CMA . In essence, the appraisal amount reflects the cost of replacing your home. But the goal of the CMA is to determine a price that someone will pay for your home. The sale price can be much different from the appraisal value, especially if there are multiple offers on the home.

Finally, government assessors and bank appraisers have different goals. Government assessors make recent sales comparisons over an entire city or county area so that their evaluations are as consistent as possible. The bank appraiser may select among recent sales in your neighborhood only to find three that will justify the loan request.

We can help you determine the value of your property by performing a Comparative Market Analysis. We can also recommend professional appraisers. Please call us to discuss the current real estate conditions that affect the market price of your property.

Please contact Kennedy & Associates at (707) 884-9000 or email us at property@kennedyrealestate.com for more information on the value of your property. Fill out our Market Analysis Form for more in-depth information about the value of your property.