Difference in Property Value
Selling Process Need to Know Difference in Agents Difference in Value    Appraised    Assessed       Market Value Earnest Money Home Inspections Real Estate Closings Real Estate Glossary Free Information For Sale by Owner Showing Service Why Listings Expire		An estimate or opinion of value. The act or process of estimating value. In general, the value is based on three approaches: cost, market, or income. The income approach is widely applied in appraising income-producing properties. Market Data Approach is traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. A county property appraiser establishes worth for tax purposes. Revaluation is the process of reappraising all real property in the county to current market value as of an effective date. Revaluation brings property values back in proportion so that each property owner pays an equitable share of the property tax burden. Property values change due to land revisions, new houses, additions, and remodeling. Market conditions are constantly changing.
Click on pictures below for more . . .		Appraisal - An estimate or opinion of value.  The act or process of estimating value.  The resulting opinion of value derived from the appraisal may be informal, transmitted orally; or it may be formal, presented in written form.  Usually it is a written statement setting forth an opinion of the value of an adequately described property as of a specified date, supported by the presentation and analysis of relevant data.  In general, the value is based on three approaches: cost, market, or income. 1. Cost Approach - That approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property.  It is particularly applicable when the property being appraised involves relatively new improvements, which represent the highest and best use of the land, or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market. 2. Income Approach - That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate.  The income approach is widely applied in appraising income-producing properties.  Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process. 3. Market Data Approach - Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market.  It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised.  The reliability of this technique is dependent upon     the availability of comparable sales data,     the verification of the sales data,     the degree of comparability or extent of adjustment necessary for time differences, and      the absence of non-typical conditions affecting the sale price.  In essence, all approaches to value (particularly when the purpose of the appraisal is to establish market value) are market data approaches since the data inputs are presumably market derived. Assessed Value The worth established for each unit of real property for tax purposes is performed by a county property appraiser. What is revaluation?  Revaluation is the process of reappraising all real property in the county to current market value as of an effective date. This differs from the annual process of notifying property owners whose property values change due to land revisions, new houses, additions, and remodeling. The state of North Carolina requires countywide revaluation every nine years. Some counties, like Mecklenburg County revaluate every six years. The last was completed on January 1, 2003.  Why do a revaluation?  Market conditions are constantly changing. Over time property values change at different rates and in proportion to each other. Revaluation brings property values back in proportion so that each property owner pays an equitable share of the property tax burden. Fair Market Value Real estate people are very familiar with this term.  Simply stated, FMV is the price that a ready, willing, and able buyer will pay assuming both parties are well informed, under no undue pressures, and possess all relevant facts.  It is the most likely price a given property will bring if widely exposed on the market, assuming a fully informed buyer and seller.  Please fill out the form for your Free Property Value.