St. George Utah Home Values
Do you know your property’s current market value? St. George Utah home values have been on the rise in recent years. Many homeowners who were once upside down on their mortgage loans are now breathing sighs of relief while those who purchased in the last few years have seen significant increases in their homes’ equity.
There are various methods of arriving at a conclusion of your home’s market value. But first, let’s be clear on what actually defines market value. St. George Utah home values (or the market value of a car or loaf of bread), can be defined simply as the price which an able buyer is willing to pay and a seller is willing to accept in an open market at a particular point in time.
Anything else can be generally referred to as mere opinions of value.
- Assessed Value
Each year, St. George Utah home owners receive mail from the Washington County Assessor containing their properties’ tax evaluations. We hold our breath as we open this fateful envelope because the document found therein indicates the “assessed value” of our property for the purpose of determining the taxes we owe.
Many of us experience mixed emotions on this day, as the assessed value may be lower than we had imagined (which is good for our upcoming tax bill), but we may also feel a bit discouraged, especially if we are thinking of selling or refinancing.
The good news is that assessed value does not always equal market value and should not be relied upon for the purpose of buying, selling or refinancing a home.
- Appraised Value
Appraisals can also be used to determine St. George Utah home values and are typically much more accurate reflections of market value than tax evaluations, but an appraiser’s opinion can also be quite expensive.
Generally speaking, an appraiser will use the MLS and other sources to locate homes that have sold within the last 6 months and are considered “comparable” to your property. The appraiser will compare various parameters such as location, sq. footage, age, lot size, number of bedrooms and baths and various improvements. The appraiser will then use her experience to add or deduct value from the comparables based on the subject property and finally reach an opinion of your home’s market value.
While it may help satisfy your curiosity with regards to your home’s market value, appraisals are more commonly ordered by banks for the purpose of mortgage loans, particularly in justifying the value of the collateral being used (the home and land). In other words, the mortgage lender wants to protect themselves and feel comfortable they are not lending the loan applicant more money than what the home is worth.
- Comparative Market Analysis (CMA)
If you would like help in simply determining a price at which to list your property for sale on the open market, you can hire a Realtor to conduct a comparative market analysis. Again, St. George Utah home values are essentially determined by what a buyer is willing to pay and what a seller is willing to accept. Thus, a CMA that shows what other similar properties have sold for can be very helpful.
A Realtor can search the MLS for “comparable” properties that have sold within the last 6 months. Comparables should be similar in location, sq. footage, age, lot size, number of bedrooms/baths and various improvements. Any differences between your home and the comparable properties, as well as the current real estate market conditions, should be taken into account.
It should be noted that Realtors do not estimate your home’s market value. Rather, they provide you with helpful statistics and recent home sales (comparables) which help inform and empower you to reach a decision on the price you should ask for your home in your local real estate. market.
Joel Robertson is a licensed and top-producing real estate broker with over ten years of experience in real estate sales and has conducted numerous comparative market analyses for his clients. He offers a CMA at no charge and with no obligations attached. Simply call him at (435) 773-1220 or e-mail him at Joel@HomeInStGeorge.com.