There are many different values to a home. First, what can your home be rebuilt for? Second is what it appraises for, and last, what can your sell your home for. All these values are very different and can differ by thousands.
Let us look at all three values separately. The value your home can rebuilt for can be a lot less than appraisal value and sales value. The reason for this is when you go to rebuild a home you won't need to replace the land. I suggest when you talk to your insurance agent that they base your insurance on the value of the home minus the value of the land.
The second value that you want to consider is the appraisal value. This value is very important. This value is based on a non-exact science of determining value of a home for banks and insurance companies. If you are looking to sell your property this value is the value that a bank will not lend more than.
The last value is the price you can sell your home for. The price you can sell your home for is not based on appraisal or the homes value by itself. It is based on what the market is willing to pay. Sometimes a home can sell for far less than an appraised value because buyers don't think it is really worth that. But in other circumstances it can sell for far more than the appraised value. A bank will not loan on a home that does not appraise. But if two buyers who both have cash the appraisal value may not be important to a buyer who really wants a certain style home.
The best way to get the value a home can sell for is to talk to a professional Realtor who can help show you the comparables in your neighborhood and give you a true estimate of what a home can and should sell for.
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