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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Market value? = Selling price?
I got a paper from my insurance broker (for a home insurance quote for a house that we are buying) from the NYC FInance re: notice of property value. The markey value they listed is MUCH lower than the amount I am paying for, should that concern me...now i feel like i overpaid an there's nothing i can do about it....but oddly the mortgage banks appraisal came back at the paying price....weird!  
HELP!!!
thanks as always!!!!
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Posted 12/19/12 12:24 PM  |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Market value? = Selling price?
i feel like market value is always under selling and apraisal price.
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| Posted 12/19/12 12:27 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Market value? = Selling price?
Posted by maymama
i feel like market value is always under selling and apraisal price.
Hope you're right!!!! 
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| Posted 12/19/12 12:29 PM |
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Re: Market value? = Selling price?
I wouldn't worry about it. When your lender appraises the house, they use comparable sales in the area (just like real estate agents use when we price a listing, or advise a buyer on fair market value). Market value = what an arms' length buyer is willing to pay for any given home. But the best way to establish it is to look at recent sales of similar homes in the same area.
"Market value" as determined for other purposes, such as tax assessment or insurance, is not determined by the same methodology real estate agents and appraisers use. There are other factors at play, which is why buyers can't look at assessed value or even fair market value on the My Nassau Property site and expect it to line up with sale prices, for example. ETA - Sometimes, for insurance purposes, they are looking at replacement value (what it would cost to rebuild the home if it burned down to the ground, for example, not market value in the sense of what would a buyer pay for this home in this market today).
The bottom line is - The house appraised (and the banks don't just rubber stamp appraisals anymore... they really want to protect their investment and appraisals can and do come in below the contract price), and you are presumably happy with the house and were willing to pay the price you negotiated. So don't worry about it!
Message edited 12/19/2012 12:37:03 PM.
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| Posted 12/19/12 12:35 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Market value? = Selling price?
Thanks Christine 
but you should know by now that I worry and second guess everything...a very BAD habit i have!....
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| Posted 12/19/12 12:37 PM |
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JsWife
His laugh, Her smile
Member since 12/06 2902 total posts
Name:
Patricia
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Re: Market value? = Selling price?
We sold our house in Queens this summer and the value from the city was much lower than the price we got.
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| Posted 12/19/12 12:37 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Market value? = Selling price?
Posted by JsWife
We sold our house in Queens this summer and the value from the city was much lower than the price we got.
was the selling price much lower than what you originally paid for?
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| Posted 12/19/12 12:51 PM |
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JsWife
His laugh, Her smile
Member since 12/06 2902 total posts
Name:
Patricia
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Re: Market value? = Selling price?
No, we made a profit. We originally bought the house 10 years ago, sold it for a 30% profit. But the final assesment from the dept of finance was always lower than the value of the house.
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| Posted 12/19/12 2:05 PM |
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jennyal
LIF Adult
Member since 8/07 1430 total posts
Name:
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Re: Market value? = Selling price?
Posted by JsWife
No, we made a profit. We originally bought the house 10 years ago, sold it for a 30% profit. But the final assesment from the dept of finance was always lower than the value of the house.
good for you!!! we are selling our coop at a loss of 28k since buying it 5 years ago....we are moving in from bayside to fresh meadows...how abotu you?
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| Posted 12/19/12 2:12 PM |
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JsWife
His laugh, Her smile
Member since 12/06 2902 total posts
Name:
Patricia
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Re: Market value? = Selling price?
We moved from Middle Village to Seaford (Long Island).
We also own a coop in Bayside that we bought 12 years ago - no idea how we are doing on that!
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| Posted 12/19/12 2:16 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Market value? = Selling price?
Remember that insurance quotes are for your structure and contents only. Land is not included in those calculations, as god forbid your house burnt down tomorrow, you would still own the land. Land by itself is valuable.
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| Posted 12/19/12 9:01 PM |
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