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Can I find out the value of my home through the
Internet?
ANSWER: 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.
How do you determine the value of a troubled property?
ANSWER: 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 records.
What are the standard ways of finding out how much a
home is worth?
ANSWER:A comparative
market analysis and an appraisal are the standard
methods for determining a home's value. 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. Be sure you get
listing prices of current homes on the market as well as
those that have sold. You also can research this
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 costs $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.
What is the difference between list price, sales price
and appraised value?
ANSWER: 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.
What is the difference between market value and
appraised value?
ANSWER: 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 is the return on new versus previously owned
homes?
ANSWER: 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?
ANSWER: 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, visit the
Appraisal Institute website, appraisalinstitute.org, or
contact the organization at 550 W. Van Buren St., Suite
1000, Chicago, IL 60607; (312) 335-4100.
What's a house worth?
ANSWER: 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
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