Appraisals & Market Value
How is a home's value determined?
You have several ways to determine the
value of a home.
An appraisal is a professional estimate of a property's market value,
based on recent sales of comparable properties, location, square footage
and construction quality. This service varies in cost depending on
the price of the home. On average, an appraisal costs about $300 for
a $250,000 house.
A comparative market analysis is an informal estimate of market value
performed by a real estate agent based on similar sales and property
attributes. Most agents offer free analyses in the hopes of winning
your business.
You also can get a comparable sales report for a fee from private
companies that specialize in real estate data. You also can find comparable
sales information available on various real estate Internet sites.
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What is the difference between market value
and appraised value?
Appraised value is a certified appraiser's
opinion of the worth of a home at a given point in time. Lenders
require appraisals as part of the loan application process; fees
range from $200 to $300.
Market value is what price the house will bring at a given point
in time. A comparative market analysis is an informal estimate of
market value, based on sales of comparable properties, performed
by a real estate agent or broker.
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What standards do appraisers use to estimate
value?
Appraisers use several factors when estimating
value including historical records, property performance, condition
of the home and indices that forecast future value. For detailed
information on appraisal standards, contact the Appraisal Institute
at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980; (312)
335-4458.
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What's a house worth?
A home is worth what someone will pay
for it. Everything else is an estimate of value. To determine a
property's value, most people turn to either an appraisal or a comparative
market analysis.
An appraisal is a certified appraiser's estimate amenities, energy
efficiency, the quality of the of the value of a home at a given
point in time. To make their determination, appraisers consider
square footage, construction quality, design, floor plan, neighborhood
and availability of transportation, shopping and schools. Appraisers
also take lot size, topography, view and landscaping into account.
A comparative market analysis is an informal estimate of market
value, based on comparable sales in the neighborhood, performed
by a real estate agent or broker. You can do your own cost comparison
by looking up recent sales of comparable properties in public records.
These records are available at local recorder's or assessor's offices,
through private companies or on the Internet.
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to Seller's page
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