| 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.
|
|
| Q: |
How do you
find out the value of a troubled property? |
| A: |
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.
|
|
| 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 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.
|
|
| 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.
|
|
| 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. |
|
| Q: |
What is the
return on new versus previously owned homes? |
| A: |
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.
|
|
| 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, 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.
|
|
| 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. 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.
|
|