Buying Your Home - Appraisals & Market Value
What is the return on new versus previously owned homes?
Typically, brand new homes will cost a little more than a resale property.
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 4.3 percent
between 1999 and 2000, compared to 2.8 percent for new homes in the same
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. An appraisal is a certified appraiser's estimate of the value
of a home at a given point in time. 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 $700. 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. We will give you a comparative market analysis for free.
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 in the ballpark, but most websites offering automated home values are ridiculously inaccurate. Zillow, Trulia, and other "auto-evaluation" websites have no idea what's going on in the community, if a property is on a busy street, or if there is a gas station right across the street. Recognize that their entire purpose is to get you to click on their website and provide your contact information so they can sell it to mortgage lenders, real estate professionals, home inspectors, etc.. They have minimal concern for the accuracy of their data as long as unsuspecting visitors to their website keep clicking buttons.
You can get some
idea of your home's value by searching the Internet, but just call us at 719-896-6696 and we will give you a professional opinion of the market value of your property.
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, which we can provide for you. 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
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. A First American Real Estate,Inc. agent will be
happy to provide a comparative market analysis, an estimate of value
based on comparable sales in the neighborhood.
appraisal, which generally costs $600 to $700 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 $600 to $700. 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.