When purchasing a home there are many things that you will need to take into consideration.
Most importantly, you need to know the value of the home.
This value is determined by many different factors and will be different from location to location.
But there are some issues that a potential home owner can encounter when trying to find the true value of the home that they want to purchase.
And when investing in big island real estate, there are some things to know about the value of homes.
Assessed Value The assessed value of a dwelling is first value that a home will get.
This is the value that is placed on the home by the municipality once it is built.
The city inspectors will come out to the home to gather several pieces of information.
The details that they will get include the square footage of the home, the number of bedrooms as well as the lot size.
They will utilize this information to get a value on the home.
Once the assessed value has been determined it will never change.
The assessed value of the home is the number that is used to determine the amount of taxes that will be paid on the property.
When you purchase big island real estate you will see that there is an assessed value on this home.
This value was gained in that manner and will be the monetary amount that is used when the state of Hawaii sends you any paperwork.
Market Value The market value of big island real estate is determined in a much different way and will have another purpose.
This value is dependent on the size of the home, number of bedrooms and size of the lot just as the assessed value.
However, there is another factor that is placed into the mix.
This additional criteria is the market value of the homes in the area and current real estate prices.
Once you put all of this information on big island real estate together, you will have the market value.
The market value is the number that is used when you need to find out how much to pay for the home.
This number will change from year to year.
There are times when it will be high.
On the other hand, there are times when market value of a home will drop.
You will want to purchase a property that has a market value that will remain somewhat steady.