Saturday, November 22, 2008

Appraisals Vs Assessments What's The Difference

Once again Vicky Chrisner, the Real Estate Whisperer has written yet another wonderful article to educate home buyers and home sellers alike.


There is a difference between "appraisals" and "assessments" although the words are commonly used interchangeably. A educated consumer knows the differences:

Assessments
  • Completed using an automated valuation program.
  • Generally done once per year.
  • Used to determine real estate taxes.
  • Should be within a margin of error of +/- 10%.

Appraisals

  • Done by licensed appraiser who looks at the home, and comps.
  • Values property "real time" (as of the date of the report).
  • Used to support sales prices or loan amounts.
  • Should be as close to Fair Market Value as possible.
To read The Real Estate Whisperers entire article on this subject click on the link

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