Tax assessments often arrive in the first couple of months of the year and upon review many home owners want to know how closely it compares to what the home would sell for in the open market. The market is drawn by the future rather than driven by the past. The real estate agent must consider the past to the extent it colors present and future values. And then the professional must move on because the market waits for no one.
Fair market value is the price agreed based on an informed and willing buyer and seller under ordinary and usual circumstances. It is the agent’s duty to ascertain the likely Fair Market Value of property which requires projection into the future.
In contrast appraisers, tax assessors and automatic evaluation models reside in the past. These methods primarily utilize available data to project the likely valuation of a property. The methods primarily use comparable properties to determine the value of property. At times I have experienced people, particularly sellers, become “stuck” on a price by citing one of these estimations.
To sell a home on the open market is an active process that takes into consideration a myriad of factors in addition to comparables. Major impactors include: supply and demand forces; inventory coming on new and re-entering the market; shadow inventory; interest rates; available purchase money; pace and type of market; whether it is a buyer, seller or balanced market; which direction the market is going; jobs, consumer and builder confidence; absorption rate; local, state and federal policies; and world events. It is a considerably more dynamic process then what an estimator can ascertain with a model.
To receive a free, no-obligation Comparative Market Analysis, contact Karen Briscoe and Lizzy Conroy and their team of agents at HBC Group at Keller Williams. Any one of them would be delighted to assist with your real estate needs, whether selling or buying a home. The group of active and experienced Realtors® in the Northern Virginia, suburban Maryland and Washington, DC market place consider it an honor to improve and impact lives. Please contact via the means most convenient for you: www.HBCGroupKW.com, 703-734-0192, Homes@HBCGroupKW.com.