Posted by genieSABRE on Nov 11, 2012
Appraisal & Assessment Values

Appraisal & Assessment Values

The Difference Between Appraisal And Assessment Values

Source:     Hannif Highclass c/o Genie Sabre Realty Inc.
Publish:     Toronto Real Estate Blog


When buying or selling a home, you sure learn alot of new words. ARM, loan limits, adjustments, mortgage interest adjustment, buyer agency….the list doesn’t end. However, there are two terms that you will always hear which you need to pay attention to: Appraisal and Assessment. These processes are a must to complete a home purchase and are often deciding factors for buyers and sellers.

Hannif Highclass, Broker / Owner at genieSABRE Realty, provides and explanation, as well as a contrast between the two terms.

Appraisal and assessment values are typically mistaken for one another. As a home buyer or home seller, it is helpful to understand the difference between these two terms. The following is the difference between appraisal and assessment values.

house values

Definition Of Asessment Values

“Towns and cities charges a tax on residential homes. The calculation of the tax is derived from a percentage multiplied by an assessed value of a piece of property. Assessments are used strictly for levying taxes and does not actually reflect the real estate market condition. Every municipality calculates assessed value using different formulas. They usually include land area, interior living area, and exterior amenities such as garages. Marshfield, MA, the area where I live and work, can re-assess home values and/or increase the property tax percentage at regular intervals.”
 
Definition Of Appraisal Values

“An appraisal is a estimation of a home’s market value by a licensed professional employing specialized methodologies. Lenders obtain the services of appraisers to determine the value of a home as opposed to to the sale price. Appraisers always review at least three other houses that recently sold within the same city. Since a town or city’s real estate market can change constantly within a time frame, comparing relevant sales is vital to a valid appraisal.”
 
The Difference Between Appraisal And Assessment Values

“The actual price of a home is ascertained by what a buyer is willing to pay, which can adjust at any time depending on related factors such as availability of options. Buyers should avoid relating assessed values with the price of real estate. Assessed values are used only for tax purposes and do not adjust as often as the real estate market does. Some towns infrequently change assessed values and regularly increase tax percentages instead. Only an appraisal can generate a true indication of the market price of a home.”

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Hannif Highclass is a Real Estate Broker (Lic# 4592663) & a Mortgage Broker (Lic# M08007683). Specialties

REAL ESTATE: We are Flat Fee full service Brokerage. Buyers cash back rebate

LAND DEVELOPMENT: Over $90 million – Plaza developed. Extensive and trustworthy relationships with local agencies, architects, general contractors, builders, & trades

MORTGAGE & FINANCING: 15+ years – underwriting of 1st and 2nd charge mortgages. Private funds (up to 5 million) available.


 


REMEMBER: Real Estate

Home Owners:

If, you already own a home – good for you!

May you be blessed with
warmth in your home,
love in your heart,
peace in your soul
and joy in your life.

However, if for any reasons you do intend to move due to up-sizing  downsizing, moving to different town or ??? —

genieSABRE recommend you check out our main web site. You will not be disappointed!

Renters:

New immigrant, 1st. Time Buyers Renters – its time to stop making your landlord rich.

genieSABRE FREE consultation, will help you & guide you through the whole process from finding the right home, to mortgage approvals, home inspection, lawyers etc Visit our main web, you will not be disappointed!

Real Estate Investors:

Home ownership should be your 1st. priority. If you own your own home – Good for you. But now is the time to take that second step – Buying Rental Property for investment. Commercial, retail or home.

genieSABRE has extensive knowledge and experience in this field. As a developer of commercial /retail plazas (built 3 so far) and owners of residential rental homes, we can guide and advice you as to what is best for you according to your personal financial position.

Call: Hannif Highclass @ 416.444.4252

http://www.geniesabre.com

 

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