Property value is the basic worth of property at the time it is sold or transferred. This is often determined according to many factors, including market values, neighborhood factors, previous owners, and the condition of the home.
Property value is not the same thing as the property price or the selling price. Property value can be considered as an estimate of what the home or property is actually worth. Selling prices can often be higher or lower than the property value, due to aspects such as bargaining skills, market demands, and other factors. As such, property value is a factor in many types of real estate disputes.
Property values can often be subject to much change, as there are many factors involved in property valuation. The same property can sometimes be interpreted differently, which makes the valuation process somewhat subjective. This can lead to much disagreement and disputes regarding property value. Some common property value disputes include:
- Disputes involving a failure to disclose defects when selling a home
- Disputes regarding the results of an appraisal
- Conflicts regarding the overall market values in a neighborhood or area
- Issues regarding title defects such as a lien or an easement (these can lower the value or cause delays/obstructions to sales)
- Boundary disputes
- Disputes with prior owners and records of the home
Lastly, home improvements can also affect the property value. It can sometimes be difficult to measure how much a home improvement is worth in terms of dollar amounts.
Some property value disputes can be addressed by:
- Consulting listings- there are often entire companies that are devoted to providing property value listings in great detail
- Hiring an additional appraiser
- Obtaining court intervention (especially for a title dispute)
In some cases, a formal lawsuit may be necessary to remedy a property value dispute. This can happen for instance if one party has lost profit on a home sales transaction due to a violation, or if one party would be unjustly enriched through the sale.
Property value disputes can cause major issues in the long run if they are not addressed immediately. For instance, it can affect the ability to sell the property later on, or it may cause profit losses in the future. You may wish to hire a real estate lawyer near you if you need help with any type of property value issue. Your attorney can research the laws to determine your rights, and can also represent you in court if you need to file a lawsuit.