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©
2002 Ruth E. Campbell. |
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Frequently Asked Questions Buying
a Home - Q & A
A: Appraised
value 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.
Q: How do you find out the value of a troubled property?
A: Buyers
considering a foreclosure property should obtain as much information
as possible from the lender about the range of bids being sought.
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.
A: A
comparative market analysis and an appraisal are the standard
ways consumers, lenders and realty agents determined what a home
is worth. 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. You also can research "the comps"
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 cost $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.
A: A
home 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 amenities, energy
efficiency, the quality of the of the value of a home at a given
point in time. To make their determination, 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. A
comparative market analysis is an informal estimate of market
value, based on comparable sales in the neighborhood, performed
by a real estate agent or broker. 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's or assessor's
offices, through private companies or on the Internet. Other
resources include:
Q:
What standards do appraisers use to estimate value?
A: 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 increased 3 percent between
1994 and 1995, compared to 0.8 percent for new homes in the same
period.
A: 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.
A: 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. |