Page 78 - Selling secrets 5 18 2023

to Value (LTV) ratio is based on the appraised value. Where
LTV is greater than 80%, the lender generally will
require the borrower to buy mortgage insurance.

“Assessed value” is the amount local or state government
has designated for specific property and frequently differs
from market value or appraisal value. This assessed value is
used as the basis of property tax and when a property tax is
levied. The assessed value of real property isn’t necessarily
equal to the property’s market value.

Approximately 60% of U.S. properties are assessed
higher than their current value; however, this doesn’t reflect
what the homes will sell for.

WHAT IS YOUR HOME WORTH?

The first step in selling your home is knowing the difference
between value, worth, and price. Let’s examine the
determining factors at work. Understanding those factors
allows them to be leveraged. There are several ways a home’s
value is derived.

ONLINE HOME VALUATION

One place to begin researching a rough estimate of a home’s
market value is on-line. Several free on-line tools provide
an estimate of your home’s current value based on recent
comparable home sales in your area using a comprehensive
database.

The downside of these systems is that the assessment is
based on available public data, with no guarantee of
accuracy and often using an algorithm that simply averages
comparable sales in the geographic area. These are quick

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