A home was recently appraised for $198,000 and the balance on the existing mortgage is $110,450. If a bank is willing to loan up to 80% of the appraised value, calculate the potential amount of credit available on a home equity loan.
Answers
In other words, what is a buyer willing to pay, and a seller willing to accept, given that all other circumstances are standard and expected.
2. Investment Value
Investment value is the value that a property offers to a specific investor. It is the value that the investor would be willing to pay for the property.
Regardless of market value, there’s always going to be a limit to what an investor is willing to sink into an asset.
Investment value is based on the investor’s own qualifications, available capital, tax rate, and financing.
3. Insurable Value
This refers to how much of a property is at potential risk of damage, for the sake of determining insurance coverage.
In other words, what is the value of the portion of the property that can be covered in an insurance policy.
4. Assessed Value
Assessed value is a property value determined by a local tax assessor for real estate tax purposes.