Marketing 101 states the value of a good is the value the market demands at the time. Real estate is no different. This is why it is important that your representative is using the latest market information to give an opinion of market value. Funkhouser Real Estate Group associates have access to not only real time market data, but also enhanced market analysis to identify current trends.
You may hear different possible valuations of your property. Let’s take a minute to review the three types of property valuations.
Market Analysis: A market analysis is conducted by a real estate licensee who is using current market data in the Multiple Listing Service. Their analysis should include a comparison of your property to other properties that have recently sold, are currently under contract and currently available. Knowledge of properties currently available is important as they may be positioned as your competition.
Appraised Value: Qualified appraisers look at the value of a property in various ways. The analysis of an appraiser is very important as it sets the standard for a lenders decision in financing approval. Appraisers will look at a property’s value based on sales comparison, its cost of production and the income the property can produce if appropriate.
Tax Assessment: Too often we hear buyers say they will not pay more than assessed value or sellers say they will not sell for less than assessed value. Both buyers and sellers must realize the tax assessed value of a property is rarely an accurate property valuation. This valuation is simply a benchmark for localities to levy taxes.
Ultimately, the pricing of your property will depend on many variables including your ability to sell at market price, the forces of supply and demand in the marketplace and the availability of competitive properties for prospective purchasers. It is important that you work with a qualified real estate professional who can help to arrive at a realistic asking price that will attract buyers, meet your goals and appraise so the buyer may obtain a loan.