How is a home's
value determined?
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 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.
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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.
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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
550 W. Van Buren St, Suite 1000
Chicago, IL 60607
(312) 335-4100
Fax: (312) 335-4400
The main e-mail address for Information Requests is:
info@appraisalinstitute.org
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Where do I get information on housing market
stats?
A real estate agent is a good source for finding
out the status of the local housing market. So is
your statewide association of Realtors, most of
which are continuously compiling such statistics
from local real estate boards.
For overall housing statistics, U.S. Housing Markets
regularly publishes quarterly reports on home
building and home buying. Your local builders
association probably gets this report. If not, the
housing research firm is located in Canton, Mich.;
call (800) 755-6269 for information; the firm also
maintains an Internet site. Finally, check with the
U.S. Bureau of the Census in Washington, D.C.; (301)
495-4700. The census bureau also maintains a site on
the Internet. The Chicago Title Company also has
published a pamphlet, "Who's Buying Homes in
America." Write Chicago Title and Trust Family of
Title Insurers, 171 North Clark St., Chicago, IL
60601-3294. |
