Page 77 - Selling secrets 5 18 2023

A calculated home value isn’t necessarily what you believe
your home is worth. Recognizing this helps avoid
overpricing, a major factor that leaves homes languishing
on the market or unsold. Familiarity with the real estate
terms market value, appraisal value, and assessed value can
save disappointment and frustration, and allow the home
seller to more meaningfully engage in setting a home’s listing
price.

MARKET VALUE, APPRAISAL VALUE, AND ASSESSED VALUE

The price at which to list a home is the seller’s decision,
although a savvy seller will solicit professional advice or
work with a trusted real estate agent to arrive at that
decision.

Knowing the real estate concepts of “market value,”
“appraisal value,’ and “assessed value” allows the home
seller to more meaningfully engage with a real estate agent
in coming to a determination of a home’ listing price.

“Market value” is the probable price a property should bring
in a competitive, open market under conditions requisite to
a fair sale. Essentially, this is a pre-negotiation opinion of
what a house should bring in its local market—i.e., its
geographical area, usually an area such as a suburb or
neighborhood. In other words, in what range do similarly
situated houses in the area/neighborhood sell for?

“Appraisal value” is an evaluation of a property’s worth at a
given point in time that’s performed by a professional
appraiser. Appraised value is an important factor in loan
underwriting and determines how much money could be
borrowed, and under what terms. For example, the Loan

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