Buying Your Home – Appraisals & Market Value
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.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 Real Estate Agent research comparable recent sales & currently listed properties that are similar in size, construction and location & will provide you with an informal estimate of their opinion of value in the current market. Most Real Estate agents provide this service for free an this is generally used to determine the listing price when a home is listed for sale. An appraisal, which generally costs $200 to $300, 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. An appraisal is regularly used by banks and lenders to ensure the value of a mortgage falls with acceptable range of the value of the property. An appraisal may also be used for determining the value of an estate or foreclosure sale.
As you can see, there are many different factors that determine the value of a home and, as with most things, the value is in the eye of the beholder! A Johannsen Group Agent can help you determine the value of your home in today’s market or help you evaluate the price of the home you wish to buy and help ensure you are making a wise investment.