The value of your home is an important number when filing Bankruptcy. Assessing this value can be difficult but can make all the difference in your case. The most common number that people look to in order to determine the value of their property is the tax assessed value. This is the value assessed for your home by the Property Value Administrator, or PVA, in your county. You can usually find this number on your annual property tax bill. Prior to the collapse of the real estate market, the tax assessed value of a home was often lower than the true market value. This was because the PVA often could not keep up with the appreciation in the real estate market. After the market’s collapse, the opposite became true, and the tax assessed value of a home was often higher than the true market value of that home. While the tax assessed value is an important aspect in determining the value of your home when filing bankruptcy, it is often helpful to take other factors into consideration to ensure the accuracy of the valuation.
The sale prices for comparable homes in your neighborhood and area are often very helpful in determining the market value of your home. If multiple homes in your neighborhood, similar in size and condition to your own home, have sold in the last few months or year, looking at those prices can help to determine what your home is worth. Similarly, if homes similar to your own have been on the market without selling at certain prices for prolonged periods of time, it is generally fair to assume that those homes are priced above the true market value. Websites, such as www.zillow.com, which feature a multitude of data on homes that have sold and are for sale across the U.S., make determining the value of comparable homes in your area much simpler.
Licensed real estate agents can also be extremely helpful in determining the true market value of your home. A licensed real estate agent is often able to perform a market analysis to assign your home a value based on its condition and the current real estate market. If even more specificity is necessary, an appraisal performed by a licensed real estate appraiser can be the most accurate method to assess the value of your home.
When you come in for your initial bankruptcy consultation with one of our experienced bankruptcy attorneys at O’Bryan Law Offices, we will discuss the value of your home and the importance of this number when filing bankruptcy Chapter 13 or Chapter 7. If you are interested in learning more about your options through bankruptcy, call us today at 502-339-0222 for a free bankruptcy consultation.
