Most homeowners do not know the exact value of the home. Many presume a number, the amount in which they will sell their home. Few people know what the number actually reflects. Understanding home value is important to differentiate between market value, assessed value and appraised value. If you use the internet tool with wisdom, you will clearly learn the concept.
Appraised value
Once a buyer and seller agree to sign the sale memorandum, the buyer’s banker comes into play. The banker establishes the appraised value of the property before granting and disbursing the loan. An appraisal is necessary to determine the price fair, which is equal to or less than fair market value. Many homeowners assume the price is more to the appraised value because of the emotional value attached to the home. But it is not pragmatic. The loan amount would be based on fair market price, not on any arbitrator price. The buyer will not pay $400 000 when the property is valued at $350,000.
If the financial intermediate finds the sale price is higher than the fair market value of the property, both buyer and vendor will have to renegotiate the price. The seller of the property is dissatisfied with the price, but this is the norm. The crux is the agreed price must be equal to or lower than the fair market worth.
The seller can contest the appraisal, but mostly futile. The real estate experts furnish the latest sale figure of the locality, the banker changes their mind very few occasions, but it is worth a try. Another available option, though rarely used, is for the buyer to cover the difference through a down payment. If both the parties cannot come to a common ground, the agreement is cancelled. The vendor gives back the deposit money; both parties are free from obligation.
Assessed value
Home assessment value is different from fair market value and appraised value. You can find this value on the local municipality`s website. This figure is not associated to the market value but reflects the tax value of the property according to the municipality body. You can contest the assessment in the local body within the predefined time.
Market value
The market value of a property is determined by a licensed professional. It is the highest price available in an open and unrestricted market, agreed by both parties under no coercion, payable in cash. The basis of this price is the last six months price of the property in the area; if no correlated data is found, the time frame is extended to the last twelve months. The professional home buyers say, “We buy houses Calgary at fair market value”. Professional home buyers have lots of experience and offer the best possible price. Sell your home to a reputed professional home buyer; they always honor the agreement at all cost. Check the reviews and accolade on the website of the service provider. When you sell the property to a professional investment company, you receive the offer within seven days.