Is there a difference between "fair market value" property value "and a" CMA The answer is that you ask?. There are several similarities in terms of real estate. A mortgage company might prefer one over the other term. A real estate company might use a term more common in their daily activities. For the customer, it is important to understand that a basic understanding of terms used value of the property on the market today.

Fair market value - the amount a willing and able buyer would pay for a property based on current market conditions and comparable properties.

Comparable Market Analysis (CMA) - The most common method to determine the current value of a home based on the condition, location and recent sales data.

Appraisal - An opinion of a third party to determine the value of a subject property based on condition, location and details of recent sales or comparable market analysis. An appraiser is said to represent the party who pays for their services. However, the appraised value has no effect on the basis of this representation.

property value - estimated value of a house on the basis of the results of a recent evaluation, comparable home prices in the neighborhood, and current market conditions.

Home equity - the fair market value of a home minus the balance unpaid mortgage or lien against it. Equity increases over time as the mortgage is paid down and appreciate the value of the property. The portion of home equity the borrower has in reality. For example, if the value of a home's fair market value of $ 250,000 and a mortgage borrower is $ 175,000 mortgage, the owner has $ 75,000 in equity in the property.

Property Tax - An ad valorem (tax) rate imposed by state or local government authorities in real estate. A governmental entity requires an appraisal of property value and the tax is determined in proportion to the assessed value.

Property tax credit - A federal allocation in the U.S. tax code, whereby the government allows the homeowner to subtract have paid property taxes on their income before calculating your income tax.

Homestead exemption - An exemption that allows a homeowner protection up to $ 150,000 in equity from creditors seeking to force a sale for debt collection is not associated with the property.

When buying or selling a home, these terms are often presented in everyday conversations with your real estate or mortgage counselor. Understanding the similarities of these terms are similar clear up any misunderstanding that may have been affected in the past.