The Honolulu Board of Realtors says that the market value of homes has dipped slightly last month (even with the pressure on prices due to low inventory) to a median of:
- Single Family Home $683,500
- Condominium $351,750
So what is Appraised/Market Value? It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.
For buying and selling purposes, appraisals are usually based on market value—what the property could probably be sold for, given the immediate past sales of properties similar to the subject property. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
NOTE: The amounts assessed by the City and County for property tax values are the amounts you see on the listing service printouts. It may or may not match the appraisal amount on which the bank bases the amount of money it will loan you. It probably is way higher or way lower than actual value as the City and County only assess value once every two years and seldom uses actual on site visual assessments.
Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Currently in Hawaii, market value is the sale price (not the asking price) of the last similar property plus appreciation to date (currently about 5-7% per annum) and plus or minus differences in your property compared to those recently sold similar properties to yours.
Appraised value doesn’t consider special considerations, like the need to sell rapidly or how much you spent on improvements. Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer. Buyers and Sellers need an accurate market analysis to determine what the market (appraised) value of the property should be before making or reviewing any property offers. Call anytime for a free home value or click here to find out the value of a property.
Looking for information on buying or selling in Hawaii? Try http://oahuhawaiirealestateonline.com where we share how to buy, manage and sell your real estate in Hawaii.