Published September 27, 2018
Your home's value isn't what you paid for it, and it isn't what you feel it should be worth. It's an estimate of what a buyer would pay at a given moment — shaped by comparable sales, the condition of the property, timing, and how active your local market is right now.
How a home's value gets determined
The lender's appraiser. Once a home goes under contract, the buyer's lender hires an appraiser to confirm the property is worth the agreed price. If the appraisal comes in low, the buyer and seller typically have to renegotiate, the buyer covers the gap in cash, or the deal falls through.
An appraiser you hire yourself. Ordering your own appraisal before listing — usually a few hundred dollars — gives you an independent read on value and helps you price with confidence.
Free online estimators. Tools like the Zillow Zestimate, realtor.com's estimate and the FHFA house price calculator are a useful starting point, but they work from public data and can't see condition, finishes or recent upgrades. Treat them as a range, not an appraisal.
The tax assessor's valuation. Your county's assessed value drives your property tax bill and is usually lower than market appraisal value. It is not a reliable guide to what a buyer would pay.
Reading market value trends
If you're buying, rising values in a given area signal competition — expect to move quickly and budget accordingly. If you're investing, research the fundamentals of a market before chasing low prices in secondary cities. And if you're a homeowner watching the headlines, remember that national or statewide trend data says very little about your own property; hyperlocal, ZIP-code-level trends are what actually matter.
Want a real read on what your home is worth in Fairview, Asheville or the surrounding area? Our agents run a comparative market analysis at no cost — get in touch.