Selling Your Home - Appraisals & Market Value
What is the difference between market value and appraised
The appraised value of a house 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 vary. 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 Realtor. Either an
appraisal or a comparative market analysis is the most accurate way to determine
what your home is worth.
What's a house worth?
ultimately 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 of the value of a home at a given point in time. 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. Most appraisals cost
about $300. A comparative market analysis is a real estate broker's or agent's
informal estimate of a home's market value, based on sales of comparable homes
in a neighborhood. Most agents will give you a comparative market analysis for
free when listing your home. You can do your own cost comparison by looking up recent sales of
comparable properties in public records.
How is a home's value determined?
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. A comparative market analysis is an
informal estimate of market value performed by a real estate agent based on
similar sales and property attributes. A Realtor with local knowledge and a good grasp on market values in your town will be the best contact to make for an accurate CMA.
What standards do appraisers use to estimate
Appraisers use several factors when estimating a home's value,
including the home's size and square footage, the condition of the home and
neighborhood, comparable local sales, any pertinent historical information,
sales performance and indices that forecast future value. For detailed
information on appraisal standards, contact the Appraisal Institute at 200 W. Madison, Suite 1500, Chicago, IL 60606, 7 a.m. - 5 p.m. CT; 888-7JOINAI (754-4624).