How do they arrive at the fair market value of a house?

Question

What % of the houses actual retail price is fair market value?

Our home taxes went up 400.00 this year. They have went up 600.00 since we moved here 6 years ago. Other folks in this general area say theirs have stayed the same, all except houses just right around ours. Something doesn't seem right.

Answer 1

Most counties/cities let homeowners appeal the fair market value assessed for the property tax purpose. You can appeal the fair market value of your house based on the comparable houses sold in your neighborhood within last year or so. You will be surprised that most probably they would lower the appraised value of your home for tax purpose.

I have appealed and won every time.

Answer 2

All of these answers are accurate. The current sales in the houses neighborhood with similar appeal and size are used. What I didn't see mentioned is a good appraiser will also look at what things are listed for. We track sales for how many days on the market they were listed and if they sold with seller concessions. These determines if the housing is going up or down in your area. Appraisals using only comparable sales are always looking in the rear and does not reveal an accurate forecast of what property is selling for right now or in the future.

Answer 3

Your first person to answer was partially correct. R/E agents use the term "fair mkt. value" to arrive at a listing price for a perspective seller, to educate the seller on homes in his area that have been listed , or sold recently. That being said, a mortgage appraiser uses closed property as their gauge, and have formulas to determined the properties value. The most common is called" market approach ", and they calculate comparisons such as age, square footage, style, amendities, date of sale, type of financing, seller concessions (if any), and rebuilding cost, along with numerios other variables, to determine Market value. After choosing 3-6 homes in the allotted area as comparibles, adjustments are made to equate the value of the home being appraised to reflect the avg. of the comps. this is how they determine Value. Hope this helps, Good Luck!

Answer 4

Market value is assessed by reviewing sales from comparable houses in the area.

Answer 5

After, the make a survey of your house they then look up/for at least 3 houses in your neighbor of the same style.
They then find what similar houses are selling for and make a decision and compare the condition of your home.

Answer 6

By looking at what has closed recently (ideally in the last 6 months) that is nearby (ideally within a square mile), and similar (same style home, s.f., garage, basement, bedrooms, bathrooms, construction materials, etc.)