Property value is the single most important thing when it comes to the housing market and all that goes along with buying and selling a house. Your property’s value is determined by several things and affects your entire investment in a home purchase whether you resell later or not.
A home’s value is determined by an appraisal that takes into consideration many different types of values for your home and these affect the price for each situation.
Market Value- The current market in which the house resides determines this. It’s based on other homes with similar assets and location and helps set the price for the house.
Insurable Value- This value is set at the time of purchase and is set by the insurer who takes into consideration what the house is actually worth and can sometimes be above the market value in order to allow as a buffer in market value during the duration of the time in which the homeowner owns the house.
Use Value- The value that is made up of what the homeowner makes in equity during the ownership of the house, and any money made during the time of ownership. For example, this could be any profit made from tenants living in the home.
These are just a few types of value that determine what a property is really worth, and all of them absolutely affect the price of the home. A property’s true value can only be determined by a real estate professional.