Knowing how much your property is worth can be helpful in many different
real estate transactions and
eminent domain cases. But how can you
find out how much your property is worth? With a combination of fair market value, appraised value, and assessed value.
Fair Market Value
Real estate agents assess fair market value by looking at how much buyers
have paid for properties similar to yours. Understanding the fair market
value of your property is a great place to start, but to know how much
your property is truly worth, you will need to do more than compare the
value of your property to comparable ones.
When calculating the appraised value of your property, a licensed appraiser
will consider the location, size, and condition of your home or business,
as well as any renovations you have completed.
Mortgage lenders use the appraised value of property in purchases and refinancing
For a full idea of what your property is worth, you will need to consider
property taxes, as well. Tax assessors will consider home improvement,
income you generate from the property, and tax exemptions to generate
the assessed value of your property.
Typically, the assessed value of your home will be lower than the appraised
value, which is why you should always consider each type of valuation.
Determining Your Home’s Value for Real Estate Transactions
If you want to buy or sell a home, you can start by entering your address
into a home value estimator for a quick estimate. Automated valuation
models (AMVs) use algorithms and public data to estimate the value of
your home. Because methodology varies, each provider may give you a slightly
Try using Zillow, Realtor.com, Redfin, Chase, and RE/MAX to get a good
idea of what your home may be worth. Keep in mind that buyers can use
this service, as well.
If you are serious about selling, ask a real estate agent for a comparative
market analysis (CMA). Most agents offer CMAs for free in hopes of winning
your business. Although these estimates come from local experts, they
may vary, as well.
For this reason, you should also check your county or municipal auditor’s
website to understand your home’s value from a tax perspective,
identify trends using the Federal Housing Finance Agency’s House
Price Index (HIPI) calculator, and hire a professional appraiser.
Hiring a professional appraiser will yield the most reliable estimate,
as appraisers have licenses and certifications from the state and provide
objective opinions on the value of your home. Mortgage lenders use appraisers
to determine the value of a house.
Determining your home’s value is the first step in selling your property.
If you face any major issues along the way, you may need to hire a real
Getting Just Compensation in Eminent Domain Cases
Eminent domain is the power of the government to take private property
and convert it into public use. Fortunately, the government cannot employ
eminent domain without providing you with “just compensation,” per
the Fifth Amendment of the United States Constitution.
Government agencies use an appraiser to determine the value of your property, but at
Allen, Semelsberger & Kaelin LLP, we know that an appraisal only covers a fraction of what is fair.
We use our extensive network of appraisers, engineers, environmental experts,
and city planners to help ensure you get the highest possible compensation
for your property.
Never accept the first offer in an eminent domain case. Instead, call us at (888) 998-2031 for a free consultation.
We have been handling eminent domain cases since 1987 and collected more
than $300 million for our clients.
Our attorneys are confident in their ability to help you, too!
Ready to get started? Call today or send us a message online.