Dartmouth, MA: Appraisal, What’s My Home Worth?

The purpose of an appraisal is to establish the Fair Market Value of a property as of a specific date, free and clear of all encumbrances.

Fair Market Value has been defines as, “The most probable price in terms of money which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”

Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions where by:

  • Buyer and seller are typically motivated.
  • Both parties are well informed or well advised, and each acting in what he considered his own best interest.
  • A reasonable time is allowed for exposure in the open market
  • Payment is made in cash or its equivalent.
  • Financing, if any, is on terms generally available in the community at the specified date and typical for the property type in its locale.
  • Property sold unaffected by special financing amounts and/or terms, services, fees or credits incurred in the transition.

Several other methods of determining the value of a property is as follows.

The Reproduction Cost Approach to Value is determined by ascertaining the dollar amount that is would cost to duplicate the subject improvements with a new structure of similar materials.  Adjustments are made in regard to the quality of construction, physical amenities and the condition of the improvements.

The accrued depreciation, consisting of physical deterioration, functional and economic obsolescence is deducted from the cost and value for the land itself is added.

Another method to determine the value of a home is the Market Data Approach to Value.  This method is determined by comparing the prices paid for similar properties in the surrounding area.  It is considered a good indicator because it represents the action of owners and investors based on the principal of substitution which implies that a prudent individual will not pay more to buy or rent a property than it would cost to buy or rent a comparable substitute property.

After an appraiser reviews the different methodology for determining value and adjusting for location, acreage, desirability and market conditions her/she will place a value on your home.

If you are interested in an appraisal on your home or a FREE Market Analysis don’t hesitate to call Gardner Realty, 508-994-9029