The value of your home is a very important factor that you will need to know, especially if you have to relocate due to your MILPCS order. That said, non-experts are likely to encounter several obstacles when trying to determine a property’s value. This is because there are a lot of different factors in play, each playing a different role. If you wish to easily understand your home’s valuation process, here are the three price tags you need to keep in mind.
Market value is the most important price tag among all the different indicators of your home’s value, so you should definitely pay extra attention to it. Market value refers to the value at which a buyer would buy your home in the current real estate market. Market value is completely independent of other factors, such as the renovations you have made to the home.
For military personnel who have to sell their home and relocate due to their MILPCS order, the market value of their home plays a significant role. This is because if you want to sell your house, you will have to rely on its market value. The market value will be the basis for all pricing options in the future. Furthermore, understanding the market value of your property will allow you to calculate the home equity of your property, which is the subtraction of the amount you owe from the home’s market value. Some lenders will provide a loan of up to 70-80 percent of your home equity, so be sure to get a correct appraisal of your home’s market value.
The replacement value of your home is also an important factor. This value estimates the total cost it would take to reconstruct your home from scratch based on local construction costs. This value is particularly useful if your home has been completely destroyed. The insurance company will determine the amount of dwelling coverage they give out based on this value.
Property tax value
This is the value that taxing authorities will use. Usually, your property tax value will be quite close to your market value, but there might be some exceptions here and there. The property tax value of your property is also important to keep in mind, as it will directly influence the amount of tax you will have to pay. If there is a huge discrepancy between your property’s tax and market value, the property itself might need to be appraised again to adjust the values.
Selling your home and preparing for a MILPCS relocation is certainly not a pleasant journey. However, you won’t have to be alone! MRP real estate agents are experts who have received plenty of training in working with military personnel, and they are the best people to contact whenever you need to find the right piece of property near your new base. Contact us right away for more information!