Buying Your Home - Appraisals & Market Value
What's a house worth?
A home 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 done by a Real Estate Agent. An appraisal is a certified appraiser's estimate of the value
of a home at a given point in time typically only good for the previous 6 months from time of appraisal. 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 $450. 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.
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 or
assessor offices, through private real estate information companies or on the
Internet. LOOKING FOR A MARKET ANALYSIS OF YOUR HOME IN NORTHWEST ARKANSAS? EMAIL ME NOW WITH YOUR ADDRESS and if you have the sq.ft. from previous appraisal please include that with any upgrades you have done since purchasing.
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).
I find out the value of my home through the Internet?
You can get some
idea of your home's value by searching the Internet. A number of Web sites and
services crunch the numbers from historic public records of home sales to
produce the statistics. Some services offer an actual estimate of value based on
acceptable software appraisal standards. They also depend on historic home sales
records to calculate the estimate. Neither of these services produce official
appraisals. They also don't factor in market nuances or other issues a certified
appraiser or real estate professional might in assessing the value of your
home. It is best to contact a great real estate professional OR an appraiser.
What is the difference between list price, sales price and
The list price is a seller's advertised price, a figure
that usually is only a rough estimate of what the seller wants to get. Sellers
can price high, low or close to what they hope to get. To judge whether the list
price is a fair one, be sure to consult comparable sales prices in the area. The
sales price is the amount of money you as a buyer would pay for a property. The
appraisal value is a certified appraiser's estimate of the worth of a property,
and is based on comparable sales, the condition of the property and numerous
other factors. Just because someone lists a home for a certain price DOES not mean it is worth that. Good Real Estate professionals will not list overpriced listings or give you the impression a home will go for a price that is unreasonable however some agents will do this "just to get the listing - in hopes to get buyers" - this is not a good plan as the longer a home is listed the less a buyer is going to pay you for it. Days on Market are a big deal. Call Nicky Dou, Top AGENT in Northwest Arkansas for a true, honest Market Analysis today. 479.236.3457 or email here.
What are the standard ways of finding out how much a
home is worth?
A comparative market analysis and an appraisal are the
standard methods for determining a home's value. Your real estate agent will be
happy to provide a comparative market analysis, an informal estimate of value
based on comparable sales in the neighborhood. Be sure you get listing prices of
current homes on the market as well as those that have sold. You also can
research this yourself by checking on recent sales in public records. Be sure
that you are researching properties that are similar in size, construction and
location. This information is not only available at your local recorder's or
assessor's office but also through private companies and on the Internet. An
appraisal, which generally costs $200 to $300 to perform, is a certified
appraiser's opinion of the value of a home at any given time. Appraisers review
numerous factors including recent comparable sales, location, square footage and
How do you determine the value of a troubled
Buyers considering a foreclosure property should obtain as much
information as possible from the lender, including the range of bids expected.
It also is important to examine the property. If you are unable to get into a
foreclosure property, check with surrounding neighbors about the property's
condition. It also is possible to do your own cost comparison through
researching comparable properties recorded at local county recorder's and
assessor's offices, or through Internet sites specializing in property
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 $300-750 depending on size of home. 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. Either an
appraisal or a comparative market analysis is the most accurate way to determine
what your home is worth.