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Is there a difference between "fair market value", "property value" and a CMA? The answer lies in who you ask. There are several similarities in terms of real estate. A mortgage company might prefer one term over the other. A real estate company might use a term more common in their daily activities. For the customer, it is important that young people manage a basic understanding of terms used value of the property on the market today.
Fair market value - the amount a willing and able buyer would pay for a property based on current market conditions and comparable properties.
Comparable Market Analysis (CMA) - The most common method to determine the present value of a home based on condition, location and recent sales data.
Appraisal - An opinion of a third party to determine the value of a subject property based on condition, location and recent sales data or comparable market analysis. An appraiser is said to represent the party who paid for their services. However, the appraised value has no bearing on the basis of this representation.
property value - the estimated value of a home based on the results of a recent evaluation, comparable home prices in the neighborhood, and current market conditions.
Home Equity - The fair market value of a home minus the balance of outstanding mortgages or liens against it. Equity increases over time as the mortgage is paid and appreciates the value of the property. Is the value of a home that the borrower actually has. For example, if the value of a home's fair market value of $ 250,000 and a mortgage borrower owes $ 175,000 in the mortgage, the homeowner has $ 75,000 in home equity.
Property Tax - An ad valorem (tax) levy imposed by the authorities of state or local government property. A governmental entity requires an assessment of property value and the tax is determined in proportion to value.
Property Tax Deduction - A federal subsidy in the tax code in the U.S., which the government allows the homeowner to subtract the property tax paid from their income before calculating your income tax.
Homestead exemption - an exemption that allows a homeowner protection up to $ 150,000 in equity from creditors trying to force a sale for the payment of debt associated with the property.
When buying or selling a home, these terms are often presented in daily conversations with your real estate or mortgage counselor. Understanding the similarities of these terms similar clarify any misunderstanding that may have been affected in the past.
