What can you trust when you are figuring out how to determine market value of a house in Denver?

How To Determine Market Value Of A House in Denver -Figuring out how much your house is worth is tough if you don’t know the right mechanism. It’s even more tough when real estate throws out complex terminology. Hiring a professional such as an appraisal is the best way you’re going to determine what your house is worth in its current state. A Realtor will be able to provide you with detailed Comparative Market Analysis to let you know what is going on in your neighborhood.

If you’re going to find out how to determine the market value of a house in Denver, don’t just listen to the neighbors or take a wild guess because the market is hot or cold.

What is Market Value, Really?

Basically, this is the amount you can expect to get if you keep your house on the market for a few months provided everything goes smoothly and you have potential buyers coming to see your home on a regular basis.

According to Fannie Mae, “Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”

What is Assessed Value, Really?

According to Zillow, “An assessment is the value placed on a property by the town or city’s assessor’s office for the purpose of determining the property tax due.”

Not everyone finds it easy to understand the assessed value of a house. Not just because of disagreeing with a number on county records but with how the county comes up with the value. A county assessor is going to give a value estimate on a property strictly for tax purposes. However, this is not going to reflect what a retail buyer is willing to pay for a property. Nobody can make a guarantee on what someone is willing to pay.

The difference between the assessed value and the market value is known as the equalization rate. This rate is used by the county to figure your actual property value. This is another way on how to determine market value of a house in Denver.

What about getting the house Appraised?

According to the National Mortgage Alliance, “An appraisal is a written estimate of a property’s market value completed by an appraiser. The value is based upon a market analysis of recent sales prices for similar properties in the area, and the property’s physical condition.”

Lender’s use an appraisal to determine the proper loan amount. This is based off three approaches: The Cost Approach, The Comparison Approach and The Income Approach. This is another way of how to determine market value of a house in Denver if you choose to pay for an appraisal.

An appraisal is done by a licensed professional who with discipline calculates all aspects of a house. This is really a very educated opinion of a home’s worth at the end of the day. Some methods really just calculate what your home is worth based off condition, market activity and speculation of what could happen. You do have to remember that an appraisal has an expiration date. Not necessarily in a bad way but it does. If you got one done in December, the value could be drastically different by the time June rolls around because of market activity.

What about going with a free internet source?

There’s the free credit score sites which seem legit because they are advertise everywhere. Would you rather trust your bank after they’ve used their resources or a free website you barely heard about? The bank is giving you the loan after all. Same thing with this. Use a professional that’s actually involved in your local market specifically. They have much more real world experience catered to your specific property. Whether that’s a Realtor, Appraiser or an Investor. Remember this as well, the Zillow CEO Spencer Rascoff sold home for much less than Zestimate.

In short, cross all your T’s and dot all the I’s!

In Conclusion To Market Value

When you’re trying to determine market value of a house in Denver, these should be more than enough sources to figure out how to gauge what you should list the price of your home for sale at. Other factors such as bringing in buyers, negotiating, keeping the house in clean condition, figuring out if you should repairs and many other things that may come up affecting the sale are a different story. We hope this blog post was helpful in any way. May you have good fortune in getting the right price!

If you’d rather sell your house for sale by owner to avoid needed to complete repairs, have an open house or paying expensive real estate agent commissions, give Adam Buys Houses Company a call at 303-997-2045 to see what your house is worth today!