### 1030.010.20 VALUE OF REAL PROPERTY

According to 20 CFR 416.1201, the value of real property is the price the property is expected to sell for on the open market minus any debt owed.

If eligibility is not in question, such as a primary residence that is excluded from the resource determination, the participant’s estimate of property value may be accepted without additional proof, if the estimate is reasonable based on the property description provided.

If the participant does not provide an estimate, if the provided estimate is questionable, or if the value could affect eligibility, use one of the following methods to determine property value:

1. Online real estate marketplace databases provided and used by real estate agents or other sources available at no cost to estimate what the home or property may be sold for based on recently sold comparable properties.
2. For Missouri properties only, the fair market value calculated by the Assessor in the county where the property is located.

The assessed value is calculated by the Assessor using a percentage of the fair market value. The level of assessment varies based on whether the Assessor determines the property is residential (19%), agricultural (12%), or commercial (32%). The fair market value of the property is the assessed value divided by the level of assessment.

Assessed Value / Level of Assessment (percentage) = Fair Market Value

EXAMPLE: Residential property is assessed at 19% of the market value.  The assessed value of a home is \$10,000. Fair market value is \$10,000 / 19% (.19) = the fair market value is \$52,631.58.

EXAMPLE: Agricultural property is assessed at 12% of the market value. The assessed value of a cattle pasture classified as agricultural land is \$10,000. Fair market value is \$10,000 / 12% (.12) = the fair market value is \$83,333.33

EXAMPLE: Commercial property is assessed at 32% of the market value. The assessed value of a retail space is \$10,000. Fair market value is \$10,000 / 32% (.32) = the fair market value is \$31,250.00

3. The purchase price if the property was purchased within the last 12 months (unless there is reason to believe the purchase price does not reflect the current market value).
4. Value determined by knowledgeable sources, including, but not limited to, a statement from:
• a licensed real estate agent;
• the local office of the Farmer’s Home Administration (for rural land);
• the local office of the Agricultural Stabilization and Conservation Service (for rural land);
• banks, mortgage companies, or other similar lending institutions;
• the County Agricultural Extension Service;