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 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 a free and informal estimate of market value, based on sales of
comparable properties, performed by a real estate agent or broker. 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 free and
informal estimate of a home's market value, based on sales of comparable homes
in a neighborhood.
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. On average, an appraisal
costs about $300 for a $250,000 house. Or, a comparative market analysis is a free,
informal estimate of market value performed by a real estate agent based on
similar sales and property attributes.
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).