Appraisals & Market Value - Q & A
Q: When it comes to market values and appraised values what is the difference between the two?
A: An appraised value is the estimate of a home's worth provided by a certified appraiser at any given point in time. Appraisals are required by lenders as part of the loan application process. The fees for appraisals range from $200 and up.
Here's where the difference is, the market value is what price the house will actually bring at a given point in time. An informal estimate of market value is called a comparative market analysis, which is based upon the sale of comparable properties. This analysis is performed by your real estate agent or broker.
Q: How is the value of a troubled property determined?
A: If you, the buyer, are considering a foreclosure property be certain to obtain as much information as feasibly possible from the lender in regards to the range of bids being sought.
Examining the property is of utmost importance. Ask neighbors in the area about the condition of the property you are interested in investing in if you are not capable of examining the foreclosure property yourself.
Another option to consider, is to visit your local county recorder's and assessor's offices to do your own cost comparison by researching comparable properties that have been recorded. You can also obtain this information on Internet sites which specialize in property records.
Q: What is the standard way of finding out what my house is valued at?
A: For finding out the true value of a home's worth, realty agents, consumers and lenders rely on two things; appraisals and comparative market analyses. Contact your real estate agent if you want to be provided with a comparative market analysis. A comparative analysis is an informal estimate of your home's value based upon comparable sales in the neighborhood. Researching “the comps” yourself can be done by checking on recent sales in public records at your local recorder's or assessor's office, however, be certain that the properties you are researching are relative in size, location, and construction. You can also locate this information on various Internet sites and private companies.
An appraised value is the estimate of a home's worth provided by a certified appraiser at any given point in time. Appraisals are required by lenders as part of the loan application process. The fees for appraisals range from $200 to $300. Recent comparable sales, the quality of the construction, the location and the square footage are factors reviewed when appraisers perform.
Q: How do I determine my home's worth?
A: In order to determine a property's value, most homeowners have an appraisal done or request a comparative market analysis from their real estate agent. In all actuality a home's worth is what someone will pay for it. Everything else is merely an estimate of value.
An appraised value is the estimate of a home's worth provided by a certified appraiser at any given point in time.
Several factors are taken into account by the appraiser when determining the value of your home, factors such as; the quality of the construction, the location of the property, availability of transportation, shopping and school amenities, and the landscaping.
A comparative analysis is an informal estimate of your home's value based upon comparable sales in the neighborhood. Researching “the comps” yourself can be done by checking on recent sales in public records at your local recorder's or assessor's office, however, be certain that the properties you are researching are relative in size, location, and construction. You can also locate this information on various Internet sites and private companies.
Q: What standards do appraisers use when estimating value?
A: Several factors are considered by appraisers when estimating a home's value. Factors such as; property performance, historical records to the most important factor, the condition of the home, which calculates its forecast value. If you wish to find more detailed information pertaining to appraisal standards, feel free to contact the Appraisal Institute at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980; (312) 335-4458.
Q: What is the difference on the return on previously owned versus new home?
A: Purchasing a house in an established neighborhood is not as risky as say buying into a new-home community, however, any increase in home value is based upon the same factors. Those factors are; the quality of the neighborhood, the state of the overall economy and the growth in the local housing market.
Resale homes do have an edge over new homes according to a survey done by the National Association of REALTORS®. The trade group's figures revealed that between 1994 and 1995 the median price of resale homes increased 3 percent. In the same period, new homes were at 0.8 percent.
Q: What are the differences between sales price, list price and appraised value?
A: The seller's advertised price is the list price, which is basically a rough estimate of what the seller wishes to receive. Some of the prices listed by the seller can be high, low or close to the figure they want. Consult comparable prices in the area in order to determine whether or not the list price is indeed a fair one.
The sales price is the amount of money, you the buyer, are willing to pay for the property which you are interested in.
The appraisal value is determined by a certified appraiser and is the appraiser's estimate on what the property itself is worth. An estimate which is based on the condition of the property, the comparable sales and a vast majority of other factors.
Q: Can I find the value of my home online?
A: Yes, by searching online you can get an idea of your home's value. Numerous websites and services produce these statistics by crunching the numbers from historic public records of home sales. Actual estimates are offered by some services which are based upon the appraisal standards of acceptable software. To calculate the estimate these services depend on the historic home sales records as well.
Take into consideration however, that neither one of these services actually produce official appraisals. These services also do not factor in issues which a certified appraiser or a real estate professional might when assessing your home's value or market nuances.
