| |
Appraisals
& Market Value |
|
What
is the difference between market value and appraised value?
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 $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. Either an appraisal or
a comparative market analysis is the most accurate way to determine what your
home is worth.
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
increased4.3 percent between 1999 and 2000, compared to 2.8 percent for new
homes in the same period.
What standards
do appraisers use to estimate value?
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 875 N. Michigan Ave., Suite 2400, Chicago, IL
60611-1980; (312) 335-4458.
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 $300.
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. Most
agents will give you a comparative market analysis for free.
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 or assessor
offices, through private real estate information companies or on the Internet.
More San Diego
Real Estate Buying Tips:
Search for San
Diego Real Estate:
|
RSS feed