Every industry has its own jargons and real estate is no exception. Real Estate Professionals are used to using these terms that sometimes, they forget that common consumers know nothing about. So,
Know The Difference In Home Values
Whether you are buying or selling it’s important to know from the beginning what the value of the property is. Knowing the difference between the different types of value will prevent you from making a costly pricing mistake when it's time to sell or buying an overpriced home when it's time to buy.
There are three types of property value you will see throughout the transaction:
Assessed value is the amount that a tax assessor for the State of Alaska has designated to that specific property and is the basis of the amount of taxes levied for that property. Assessed value is very different from market value and appraised value but is important to know so you can save up for taxes accordingly.
Market value is commonly known as the highest amount a buyer may be willing to pay for a property and the lowest amount that a seller is likely willing to sell the property for, assuming both parties are fully informed and that the home has been on the market for a reasonable amount of time. Market value estimates can be found at AlaskaHomeMarket.com. It’s important to remember that online estimates can vary widely; to get an accurate valuation you should contact a real estate professional.
Appraised value is a professional opinion of the value of the property at a given time based on the location, size, improvements, comparable sales and various other factors. The appraised value is determined by a licensed appraiser and is used by the mortgage lender to determine the Loan to Value Ratio (LTV).
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