One of the biggest contributing factors to the real estate frenzy of the last two years was record low inventory. But in this week’s Deep Dive, Kate Rezabek delivers some good news for hopeful buyers: inventory is on the rise and that comes with a lot of positives.

Free Property Valuation

With rising mortgage rates and continued price appreciation, there are lots of concerns around affordability right now. People are asking 'Is it still affordable to buy a home?' and they're seeking you to provide them with the answer. In this week's Deep Dive, KCM President David Childers, breaks down everything you need to know about affordability in the present state of the market.

While the past few years have been a roller coaster ride on many fronts, there was a silver lining for homeowners: Home prices have risen considerably. You might be wondering if you should take advantage of the climb in values and sell your home or tap its newfound equity. As you consider your options, a good starting point is to ask yourself: Exactly how much is my house worth?

How much is my house worth?

When getting a home value estimate, consider the three main types of valuation:

• Fair market value: Fair market value encompasses what your home looks like to prospective buyers compared to other homes in the area. Consider the sale price of a home that’s similar to yours (same number of bedrooms and bathrooms, square footage or outdoor space, say). If you work with a real estate agent to help you sell your home, this is where your agent will start: by looking at comps to gauge what buyers have been willing to pay for a property comparable to yours.
• Appraised value: While the appraised value of your home factors in comps, it differs from fair market value. To calculate appraised value, a licensed appraiser considers the location, size and condition of your home, and any renovations you’ve completed. The appraised value is what mortgage lenders look at when a borrower buys a home or refinances their mortgage.
• Assessed value: The assessed value is the assigned dollar value of your home used by local county tax assessors to determine property taxes. “Tax assessors calculate assessed value based on various factors, which may include the appraised value and the fair market value, as well as any home improvements, whether you generate income from the property, and any tax exemptions,” explains Jade Lee-Duffy, a Realtor with Reali in San Diego. Usually, the assessed value is lower than fair market value and doesn’t actually represent how much a property could sell for, Lee-Duffy says.

Bankrate insight - Erik Martin

Curious about what’s happening in your neighborhood? You can create a custom market report to see what’s active, under contract, and sold in your neighborhood! 

PenFed Credit Union Mortgages - Introducing Power Buyer™ Solutions

Bethesda Real Estate Pros

Our website features the best real estate search for homes, condos, land and foreclosure properties available. It is the only site you will ever need! It is easy-to-use and updated by the official Realtor®’s database every 15 minutes. 

You can save searches, and get daily email alerts of new listings, price changes, sold data, and market reports. Our Interactive Map Search allows you to view properties on a map or refine your search by drawing the boundaries around the area you desire. 

Curious about what’s happening in your neighborhood? You can create a custom market report to see what’s active, under contract, and sold in your neighborhood! 

Considering selling or refinancing your home? Get an INSTANT property valuation now!

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