How Is A Home's Value Determined?
There are a few ways of determining the value of your home. The first way is by sitting down with your realtor and discussing what you believe to be the market value of your house. The market value of your house refers to what it is worth in relation to the houses that are near or comparable to it.
Market Value
To decide what you believe the market value of your house is, you could go and look at homes for sale in the areas and neighborhoods close to you and then compare your home to theirs. Looking in the multiple listings catalogue for your area can also help you to identify a suitable price or value for your home.
Another way to find out the value of your home is to have an appraisal carried out. Real estate appraisals, or estimations, are the topic of much discussion. Each appraisal is diverse and the appraiser will use his or her expertise, specifications and judgment to reach a value price that represents true market value.
An appraisal provides valuable information for the buyer and the seller, however the appraisers primary assignment is to guard the lender. 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.
What An Appraiser Looks For
Some sellers believe thatgood house tidiness can improve a homes estimation, but this is in fact wrong. Appraisers are looking for signs of neglect, not dirty dishes.
Becoming an appraiser is not as easy as people assume, as Federal law requires states to establish minimum standards and licensing practices for real estate appraisers. You should also remember that appraisers have an obligation to reveal home defects to buyers.
Because an appraisal is a professional estimate of a propertys market value the service varies in cost depending on the price of the home. Typically, an appraisal will cost about $300 for a house that is valued at $250,000.
