I’m in the middle of filling out FAFSA and CSS. I have both a home and other real estate. The CSS is asking for market value which I understand can come from Zillow or some source like that. My question is on some other threads I had read that I could discount that value by 20% for distress sale. Can I do that? and for both my home? and other real estate?
I think you need to use the current value, not a discounted one.
Thanks @thumper1 for the reply. Do you know when you can use this discounted valuation because I thought it was yourself who brought it up on this other thread about a month ago?
Not me! I don’t know a thing about real estate values! I would look on Zillow, or at recent real estate transactions for homes like yours. You are supposed to put a realistic value for what you could sell your home for if you sold it today.
I think that was the point. In order to sale today, you would have to discount the price and from what I was remembering they were quoting an IRS reg that allowed a 20% discount. Of course, now I can’t find that thread. I think I will start a new thread specifically asking about the 20% and see if I can get that person to respond or see if I just imagined it.
I think when they say “if you sold your house today” the point is to get current market value, not last year’s value or the value 5 years ago. It’s not to figure out the bargain basement rate, but an accurate, current assessment of your home.
I did find the reference to this. It does not apply to primary residence but investment/rental property which makes sense. You would sale investment property to pay for school but hopefully not your primary residence. That you would take a home equity loan on. It is quoted in one article again referencing the IRS quick sale rules. I cannot find any other backup for this, so I think I will have to use the actual market value.