Appraisals, assessments, market analysis???

I was not surprised to see a number of questions on the chat room about establishing the value of a home. One of the most common points of discussion between owners and REALTORS is the concept of value-pricing v worth-pricing.

Sellers often equate worth and value as being the same. They're not! Worth is a very personal and internally driven number that often tends to be fixed in the mind of the owner. Value, on the other hand, is based on some measure of objective data and, therefore, externally driven.

Getting to the point where you can recognize the difference is a huge step in the right direction if you're thinking of selling your home.

I often get questions about appraisals and assessments, and how they could differ from a recommended list pricing strategy as a result of a Market Analysis.

An appraisal is a formal written report by a licensed appraiser. It can serve any number of purposes such as for estate planning purposes, or refinancing.

An assessment is generally the basis for any community's determination of what revenue they need to generate community service levels and is usually set every three years.

A Market Analysis is an estimation of value based on comparable sold data over a period of time, usually the last six months.

Each may be a separate number! The important thing to remember is that ANY number is not a specific target, but a best guess as to what the value of that property is at that time and for what purpose. Markets change.

Listen carefully to your local real estate professional! They'll guide you through the maze.