Home Value Q&A

February 1, 2007

Here’s the most common questions I’m asked about regarding home value.

Q: What is the difference between market value and appraised value?
A: 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 $300 and up. Lenders often increase appraised home values during a refinance.

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.

Q: What are the standard ways of finding out what a house is valued at?
A: A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents determined what a home is worth.

I would be happy to provide a free comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. You also can research “the comps” 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 $300 to $400 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 construction quality.

Q: What is the difference between list price, sales price and appraised value?
A: 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, you or your agent should 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.

Q: Can I find out the value of my home through the Internet?
A: 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. It’s extremely important to make sure your internet source is updated in a timely fashion. It is my experience that the majority of real estate related websites are usually six plus months outdated. That could result in costly pricing errors.

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.

February 1, 2007 | Filed Under Real Estate

Comments

One Response to “Home Value Q&A”

  1. Karolyn Leanne on October 21st, 2007 6:08 pm

    and they also said, that we couldn’t last togethe. Karolyn Leanne.

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