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Appraisals & Market Value - Q
& A
| Q: |
How is a
home's value determined? |
| A: |
You
have 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.
A comparative market analysis is an informal estimate of market value
performed by a real estate agent based on similar sales and property
attributes. Most agents offer free analyses in the hopes of winning your
business.
You also can get a comparable sales report for a fee from private
companies that specialize in real estate data. You also can find
comparable sales information available on various real estate Internet
sites.
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| 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 $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.
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| Q: |
What's a
house worth? |
| A: |
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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| Q: |
What
standards do appraisers use to estimate value? |
| A: |
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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Copyright 1999 Inman News Features
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