Appraisals And Market Value
One of the most important things connected with selling a property is working out the true worth or value of your property. There is a multitude of ways that you can work out the value of your home, but for most people the two main ways that they use are market value and appraisal. Both of these techniques are valued methods of calculating the value of a home, but are markedly different from each other.
Sitting down with your realtor and discussing what you believe to be the market value of your house is the best place to start, for most property owners. The market value of your house refers to what it is worth when it is compared to houses that are near or comparable to it.
Deciding The Value
There are many ways to decide the market value of your house, but most of the time it is done by comparing your house and its location to houses that are for sale near by or on sale in a multiple listing service. Performing a comparable market analysis can help you to get a better prospective of the market value of your property.
Having an appraisal performed on your home is an additional way to find out the value of your home. Real estate appraisals provide valuable information for the buyer and the seller, however the appraisers, who caries out the appraisal, primary assignment is to guard the lender.
An appraiser is an expert professional who is qualified to use their opinion, judgment and experience to perform a thorough and detailed examination of your home. This examination will lead them to a valuation of your home, compared to the current market conditions.
How Appraisers Work
To perform their examination and get to the correct valuation appraisers weigh up specific criteria including location, proximity to desirable schools, and condition of the home and recent sales prices of similar properties, to arrive at a value.
To become an appraiser is not easy, with federal law requiring states to establish minimum standards and licensing practices for real estate appraisers.
Because an appraisal is a professional estimate the service is not free. The cost of an appraisal depends on the price of the home, but is typically about $300 for a house that is valued at $250,000.
