Law Articles And Legal Issues

Tax Assessment/Appraisal: How Do I Know What My Home is Worth?

If you are in the home buying or selling market, it's important to understand the difference between tax assessment and appraisal value. Concentrate on the appraisal value because this determines your asking price.

Understanding Tax Assessment

The tax assessment is a tool local governments use to exact a property tax rate on residents. The local government determines your home's worth by reassessing the homes in the area you live in periodically. Some areas reassess every 2-3 years. But with today's booming real estate market, the National Association of Realtors estimates 60-70% of U.S. tax assessments do not reflect the escalating market value on home sales. This is why the tax assessment is not always an accurate gauge of true home worth.

Tax assessment offers a general idea of home value. If you are curious about whether your tax assessment office is keeping up with the local market, telephone your local real estate board and local tax assessment office. Ask them about the local appreciation value on homes to determine if they are up-to-date.

Focus on the Appraisal Value

Home sellers should concentrate on the appraisal value, because a mortgage lender will write a loan on the home for this amount. Location is the prime factor in appraising a property. An appraiser will look at three homes that sold during the previous three-month period to determine what similar properties have sold for in the same neighborhood. If your home is in a rural area, or if the sales in your area have been sluggish, the appraiser can go within a five mile radius to locate similar homes for comparison. If there is home value inflation in the area, the appraiser will factor this in. A good appraiser will contact the realtor who sold the homes he or she is using as a comparison.

What Do Appraisers Look For?

An important rule of thumb of real estate is: location, location, location. Appraisers are mainly focused on the following to determine home worth:

• square footage

• condition and age of the home

• location

• lot size

• number of bedrooms

• number of bathrooms

• total number of rooms

• garage(s)

• decks

• screened porches

• fireplaces

Secondary Enhancements Help a Home Sell

There are other bells and whistles the appraisers may factor in, but their impact on home value is marginal. Although these improvements do help the home sell, they do not impact the appraisal significantly.

Here are some examples:

• ceramic tile

• hardwood floors

• crown molding

• chair railing

• specialty counter tops, cabinetry

• sprinkler system

• wainscoting

• upgrades in light fixtures

• upgrades in faucets, sinks, tubs and showers

• swimming pool

Sell Your Home Quickly

Do not be mistaken -- upgrades are worthwhile because they will help sell your home quickly. For example, eye-catching landscaping will lure people in to look at the home, because 80% of homebuyers decide if they like a house when they first drive up to the property.

When do I Need an Appraisal?

Home sellers may want to pay for a professional appraisal so they know the true value of their home, but they are not required to have an appraisal. Your realtor will determine an asking price with you. To determine a fair and marketable price for your home, expect your realtor to research comparable home sales on Multiple Listing Services (MLS). Homebuyers are required by the lender to have an appraisal done and they must pay an average of $300-500 for it. Payment is due at the time of the appraisal. The buyer does not have the right to choose the appraiser -- the lender does this. Loan officers keep an approved list of appraisers on hand.

Research on Home Value

While conducting research on home value consider this: Is the neighborhood you live in completely built out, or are you competing with new homes still being built? If you are putting your home on the market and would like to conduct some of your own research, you can do one of three things. Visit the courthouse in your county and see what has sold in your area that is similar to your home. Call your local realtor and ask for a comparative market analysis. Or, visit open houses in your neighborhood which are similar to your own, to see what they are selling for. All of these activities are a good education for homeowners interested in learning the value of their home before placing it on the market or refinancing.

About The Author

Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Elaine is also an Accredited Buyer's Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia. Visit http://www.voncannonrealestate.com.

vonmor1@cox.net

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

Property Tax Fear and Loathing
If you have read my other articles here, you might have noted the psychological approach towards subject matter. Therefore, as you have probably guessed from the title, this article on property tax is not going to be any different. After all, the years spent earning degrees in neurobehavioral psychology should not be wasted.

Hackers Given Access to IRS Computers?
The Treasury Department inspector general has reported a distinct weakness in the security surrounding the IRS computer systems. Unlike the problems found with other security systems, this one is human.

Maryland Lawyer Unveils Unique Business Referral Group
Perfect Networker, a new business referral group emphasizes "mastermind" collaboration and education, not just referrals.

Auto Lemon Laws – Do You Need A Lawyer?
Buying a new automobile is usually a bid decision for most people, and it involves a lot of time, research and most of all, money. If you are going to be paying for something for five years or more, you will generally take your time, do your research, and make sure that you are spending your money wisely on a vehicle that will last for years.

Pakistan Penal Law on Qalt (Murder)
In this article, we shall study the type of the Qalts and their punishments as has been provided in Pakistan Penal Code 1860; when the right of Qasis can be exercised in qalt-i-amd, what are evidential standards of the enforcement of Qalt-i-amd as Qasis, who can exercise the right of Qasis and what case in which Qasis can not be enforced? When criminal court can award punishment as Diyat and Tazir?Types of Qalts defined in PPC 1860 The following are Qalt has been defined in Pakistan penal code constituting the offence of Qalt.Qalt-i-AmdWhoever commits the intentional or premeditation plan of death of person or cause body injury to person intentionally by doing which is in ordinary course of life can cause death, or with the intention and k...

Essential Points about Product Liability Litigation
All of us rely on products and services to get by with our daily lives?Food, clothing, vehicles are among the most basic things we need to live our life with comfort. To ensure this, it is but reasonable to expect that these products be of top quality and durability.

Federation of Exchange Accommodators Supports Nevada 1031 Exchange Law
The Federation of Exchange Accommodators (FEA) announced today strong support of the state of Nevada's SB 476, a bill Governor Jim Gibbons signed on June 14 that becomes effective July 1, 2007.

Don?t Forget to Take Care of Your Money When Attending a Tax Auction
Don?t Forget to Take Care of Your Money When Attending a Tax Auction

Liberty Tax Franchise Opportunity is a Winner
Only tax franchise ranked on all 3 major industry surveys.

Buck Consultants Finds Executive Retirement Plans Alive and Well After Final IRS Rules
An overwhelming majority of employers have no intention of terminating their nonqualified executive retirement plans as a result of final Internal Revenue Code rules governing these arrangements.

Stock Purchase Agreement for Top Marketing Company Drafted by Amlaw A-List Law Firm Released by Online Legal Document Source RealDealDocs.com
RealDealDocs.com offers various online legal documents from agreements to contracts available for download and print. This release regards the stock purchase agreement drafted by Amlaw firm pick Patterson, Belknap, Webb & Tyler.

Outskirts Press Announces 'Extraordinary Visits', the Latest Highly-Anticipated Spiritual Book from Maricopa, AZ Author Linda Law
Outskirts Press, Inc. has published Extraordinary Visits: Extraordinary Miracles through Divine Intervention by Linda Law, which is the author's most recent book to date. The 5.5 x 8.5 paperback in the Spiritual category is available worldwide on book retailer websites such as Amazon and Barnes & Noble for a suggested retail price of $14.95. The website at www.outskirtspress.com/extraordinaryvisits was launched simultaneously with the book's publication.

Tax Relief Attorney- Useful Facts For Saving Tax
If you are searching for information related to tax relief attorneys or any other such as Inland Revenue income, bush TV stands, new tax relief or tax relief programs you have come to the right article. This piece will provide you with not just general tax relief attorney information but also specific and helpful information. Enjoy it.

The Free Market and Tax Evasion
Law enforcement officials have had a difficult time cracking down on offshore islands and countries that aid investors in concealing income and tax evasions. These countries, such as Switzerland often have their financial companies marketing trust accounts as a way to protect income from lawsuits, but in fact often the main concern is to evade taxes in the investor?s home country. In effect, when one country is persuaded by the United States or the European Union to crack down on tax evasion, another country or countries step into the breach to allow expanded ?globalized? opportunities to conceal income. Thus there is a boom in offshore investment in Singapore, and in Dubai.