It all depends on why you need to know. If you’ve bought or sold a home recently, you probably noticed that your Realtor, insurance representative, and tax assessor had different notions about what your home is worth. Why? There isn’t just one value for your home. Here are three home values you should keep in mind.
First, there is the matter of taxes. You pay property taxes based on what the local tax assessor says your home is worth.
Depending on where you live, your assessed market value may be higher than the market value. If that’s the case, consider contesting the assessed value. You can check you tax assessment through your local county’s appraisal district website.
Suppose you bought a 2,500-square-foot house for $250,000. So why does your insurance provider want to insure you for $320,000? This would account for how much it would cost to rebuild in the event of a total loss; this amount is known as the replacement value.
If you moved to an area with diminished home prices, then the cost to rebuild could be higher than the market value. The cost to rebuild or replace a home can sometimes be more than what the homeowner thinks the home is worth. For this reason, check your homeowner’s insurance policy for its value.
This one is easy: The market value is what a buyer is willing to pay for your home. While improving recently, home prices in many areas of our Metroplex are still not back to what they were a few years ago. The type of market conditions of a city or even subdivision is determined by the number of available homes on the market and how long they stay active.
A great article on the worth of your home, click here to read an article written by Michelle Lerner.