When it comes time to sell your home in Boise you may encounter these terms: fair market value, assessed value and appraised value. Oftentimes people are confused by what these terms assess and why they are individually important. Don’t worry, we’re here to straighten out the confusion and make you confident when these words get tossed around.
Fair Market Value
This is an estimate of what a willing buyer would pay a willing seller for a property. The value can be determined by a realtor and is a subjective estimate. It should take into consideration recent sales of homes that are comparable to the home be assessed. That means you take into consideration the interior of the home, the exterior of the home, it’s location, etc. If this value is accurately assessed, the buyer and seller will both be happy. It’s a win-win. It’s important for this value to be accurate so as to avoid complications if it doesn’t come close to the appraised value.
Unlike the Fair Market Value, this property estimate must be performed by a licensed appraiser. An appraiser will take into consideration every aspect of the home and much more. This is a vitally important value to a seller because it is a professional opinion. It’s easy to place an emotional value on your home when selling. If you’re unwilling to budge on the price you believe your home is worth, it could create problems in the future. It’s also important in order to determine what kind of lending is required for your home’s buyer.
Lastly, the assessed value is an estimate of what the city/government believes your home is worth. Don’t be alarmed if this number looks different than both the appraised and fair market value.The importance of this value lies in that it decides what amount of property taxes you pay on your home. So ideally the value is lower and typically is lower than the Fair Market Value and Appraised Value. This is mainly assessed by an exterior bare bones of the home, nothing very formal. In fact it is often determined by a quick drive by assessment.
We hope this helped clear things up a bit! Each value is important for different reasons in your journey of home selling. Keep in mind that when selling, an agent can place a price on your home but you still may not go home with that amount in your pocket. When working with Treasure Valley Property Solutions, you’ll know the exact amount you’ll receive. You’ll also be able to get an estimate quickly and close in as little as 7 days. We like to keep the process of selling your home confusion free.