Homes are just worth as much as someone will pay for it. The definition of fair market value is the price that an informed buyer will pay for a home which has been on the market for quite a length of time. It can be tricky to determine how much that is. Although you require a professional valuation to get the most exact figure, an informal estimate you search on your own can help as a good starting point.
The best way to get a true fair market valuation is by a licensed appraiser. The appraiser researches the comparable sales, gets the recently closed sales of homes in your neighborhood that are similar to yours and after this compares them to your home. During this comparison process, the appraiser subtracts or adds from the value of your home. It depends on whether it compares unfavorably or favorably to the comparison homes. This appraiser also takes neighborhood characteristics, such as socioeconomic trends, accessibility of shopping, schools and transportation. The result is an estimate of value rather than a set-in-stone figure, accurate. However, it is the most exact valuation available.
Comparable Market Analysis
A comparable market analysis helps in estimating the optimum selling price, but not market value. In many cases, specifically when you are determining a sale price for a home that you want to sell, or when you offer price for a home that you want to purchase, the likely sale price is all you require. Your real estate agent will also help you in preparing your analysis by finding recently closed sales of all similar homes in your neighborhood. The main difference between an appraisal and analysis is that the analysis is done by a licensed appraiser, not an agent and the agent do not make detailed adjustments of an appraisal to the subject property’s value.
You can also search market value of property by researching its property tax valuation that is called an assessment. These records are available to the public. Since different countries have various methods of expressing their assessments and assessing value, it is significant to talk to someone at the tax office for learning ways to interpret the figures.