The housing market is always fluctuating between highs and lows. This makes it difficult for the average property owner to really know what their property is worth. If you are planning to file bankruptcy, you need to know your property’s value.
Typically, there are several valuations of your home (or other real estate): property tax, online resources, appraisals, and comparative market analysis.
Property valuations greatly differ from property to property- this blog is not advice, but instead general information your attorney can discuss with you.
Generally speaking, property tax valuation is too low. This is because the county doesn’t take into account all aspects of the property. In my experience, what I find is although Zillow and other online resources can be high, usually they are closer to the property’s actual value than the property tax statement. If you really are not sure your bankruptcy attorney will likely suggest a comparative market analysis or an appraisal.
The difference between the two are, appraisals are more in depth, but more expensive. While comparative market analyses are typically free and involve a realtor walking through your property and creating a home value based on home sales with like condition, home structure, and location.
In most cases, a comparative market analysis is a very good estimate of your home’s (or other property’s) value and works just fine for filing. You will need to contact a neutral licensed realtor to do the comparative market analysis and when finished the realtor will give you the report.
Getting the correct valuation of your home in bankruptcy is important as it typically determines whether your case will be federal or state exemptions.
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