<p>For the CSS profile, I need to put a value on our house that we've owned for 9 years. Do I use assessed value? A wild guess at what I think the market value is today (in a volatile market)? Or what it might be when my child starts college next fall? Thanks!</p>
<p>You are supposed to use market value, not assessed value.</p>
<p>I would try to estimate what you could sell the home for in about 30 days or so. In a volatile market, you would probably want to be somewhat conservative.</p>
<p>Also check zillow.com to see what the "known" value of your home is and what CSS and schools would see were they to double check your estimation.</p>
<p>I think you would just need to have documentation of how you arrived at your value if ever asked.</p>
<p>I was also advised that it is plausible to use the cost of your home, adjusted for inflation since the date of purchase, as the current market value. Honestly, especially in today's market, it is a guesstimate - using the inflation index, which can be found on the internet will turn out a conservative, supportible number.</p>
<p>I think the most important thing is that it is realistic and supportable. If some one has owned their home for 20 years and gone through the ups and downs in SoCal, they could have purchased for $200k, and now have homes in their neighborhood seeling for $900k, but the inflation adjustment might not be anywhere near that number.</p>
<p>The most difficult thing in this market is to adjust for value when nothing is selling, if you do it in a way that you can defend it if asked, that would be smart.</p>
<p>I would look at zillow [or similar websites] estimates with caution! I'm checking my neighborhood right now and see selling prices well below their estimates. My home for ex. depreciated since 9/11 the last "zestimate" date, by 1.5% and falling. For the year, the zestimate shows -4%. Further, if you use "my estimate" tool on their site, you may further adjust the estimate.
The CSS/Profile specifically states that you can't use assessments, prop. tax values, etc.
The last similar home sold in my hood is from Feb and since summer, there are at least 1-2 homes for sale that didn't move yet.</p>
<p>You might use one of the post cards you get from a Realtor, and use that as a bench mark for real value in this market.</p>
<p>Thanks for the guidance, everyone! I've been leery of using Zillow for anything as important as this. It's an interesting resource, but I sense that values don't always reflect the current reality. I find it interesting that this item appears to be so open to interpretation. When I'm filling in all the other blanks down to the dollar, this property value point seems very squishy.</p>
<p>Zillow is pretty whacked sometimes. I checked the value of our home and it was very high, and much higher than what I could sell it for. Fortunately the house next door and the house across the street sold recently, so even on zillow you can see my house is estimated for 65K more than what the house across the street sold for just a couple months ago. They are almost exactly the same house. So don't trust zillow. It's very inflated, in my experience, and in the experience of other friends who live in our area.</p>
<p>
[quote]
you do it in a way that you can defend it if asked
[/quote]
Exactly right. The worst case scenario, in my mind, is if some FA official at your kid's school decided to take a microscopic look at your Profile numbers. What if they had in their heads that you defrauded the school and were hell-bent to make that case, and not only your kid's FA, but his admission, credits and degree were in jeopardy?</p>
<p>So, to protect against this unlikely but ruinous possibility, you need to be able to justify every number on the Profile. For home value, you better have a piece of paper from an outside source that states the number you put on the Profile form. It could be a print out from Zillow, an estimate from a real estate agent, your tax appraisal (if in a state that is accurate, like TX), or an actual appraisal from an appraiser. If you are totally unable to do any of these things, and all you can do is guess, you better guess ridiculously high.</p>
<p>Consider using the Federal Housing Index Multiplier.</p>
<p>The Profile asks for the year you purchased your home, and how much you paid. Those numbers get put into the FHIM to get an estimate of current value, and to see whether the estimate you used is within reasonable norms.</p>
<p>This tool usually comes up with pretty conservative estimates.</p>
<p>FinAid's thoughts on the matter:</p>
<p>"The minimum derived value (from the Multiplier) is a very conservative figure for the value of your home in the current real estate market. It is a good idea to add an extra 10% to the value reported by this calculator.... If there are extenuating circumstances that cause your home to be worth less than this value, use the lower value but be prepared to document it, with assessments, appraisals, or other proof depreciated value.</p>
<p>If you have a recent assessment that is much higher, we recommend using the higher figure to be safe. "</p>
<p>I just calculated my home on the Fed House Indicator and it definitely was low...by approx $40,000. I am getting my figure based on recent sales of similar town homes in my neighborhood.</p>
<p>I think Zillow is waay off in most cases I have seen, friends & family members home where I know the area show values ay higher or lower.</p>
<p>An elderly old family friend recently sold a home for $1.5 milion which zillow had at $600k- huge discrepency. I have seen both over and understated home values.</p>
<p>In today's market I cannot see $25-$75k differential even being argued about, I see people advertising they have lower their sale prices that much and more, so how can any one truly support an exact amount. Unless that $50 is a large percentage of the home value, but I am thinking of the coastal states overpriced market.</p>