- What is
the difference between market value and appraised value?
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 $200 to $300.
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.
Click
here to recieve a free Comparative Market Analysis (CMA) from
one of our highly qualified agents!
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- How do you
find out the value of a troubled property?
Buyers considering a foreclosure property
should obtain as much information as possible from the lender
about the range of bids being sought.
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 records.
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- What
are the standard ways of finding out what a house is valued at?
A comparative market analysis and an
appraisal are the standard ways consumers, lenders and realty
agents deterimined what a home is worth.
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. 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 cost $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 construction quality.
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- What's a
house worth?
A home 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 amenities, energy efficiency, the quality of the of the
value of a home at a given point in time. To make their determination,
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.
A comparative market analysis is an
informal estimate of market value, based on comparable sales in
the neighborhood, performed by a real estate agent or broker.
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's or assessor's offices, through private
companies or on the Internet.
Other resources include:
- The Home Sales Line allows people
to use their telephones to find the exact selling price of houses
anywhere in the state 24 hours a day. Call 1-800-585-HOME.
- Dataquick Information Systems tracks
home sales statewide and prepares reports for specific properties.
Call 1-800-999-0152.
- Go to Web sites such as http://www.homeshark.com
and http://www.dataquick.com
.
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- What standards
do appraisers use to estimate value?
Appraisers use several factors when
estimating value including historical records, property performance,
condition of the home and indices that forecast future value.
For detailed information on appraisal standards, contact the Appraisal
Institute at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980;
(312) 335-4458.
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- What is
the return on new versus previously owned homes?
Buying into a new-home community may
seem riskier than purchasing a house in an established neighborhood,
but any increase in home value depends upon the same factors:
quality of the neighborhood, growth in the local housing market
and the state of the overall economy.
One survey by the National Association
of Realtors® shows that resale homes do have an edge over new homes.
The trade group's figures show the median price of resale homes
increased 3 percent between 1994 and 1995, compared to 0.8 percent
for new homes in the same period.
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- What is
the difference between list price, sales price and appraised value?
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.
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- Can 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.
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