Owen Bigland blogs about how there are 3 different types of value that are attached to any piece of residential real estate. Appraised
Value: This is done by your bank or lending institution if you are
borrowing money via a mortgage to purchase the home. The banks want to
make sure that the house you are buying and borrowing money for is
actually worth what you are paying. Occasionally deals can collapse when
someone buys an overpriced property and the bank appraises it for less
than what was paid. As a result they will usually require the borrower
to increase their down payment if they want to secure the mortgage and
close the deal.
Assessed Value: This is done by the Province (BC
Assessment), they estimate the value of most BC homes as of July 1 each
year and mail you a statement in early January. BC Assessment
calculates this value by analyzing and comparing data from a number of
different sources including: Info from the land titles office, building
permits and real estate transactions on the MLS;
Market Value: This is simply the price that homes are currently selling for (SOLD PRICE).
This entry was posted on February 22nd, 2012 by Owen Bigland | Posted in Video Blog