Appraisals and Market Value

Q: How do you determine how much a home is worth?
The short answer: a home is ultimately worth what is paid for it. Everything else is really an estimate of value. Take, for example, a hot seller’s market
when demand for housing is high but the inventory of available homes for sale is low. During this time, homes can sell above and beyond the asking
price as buyers bid up the price. The fair market value, or worth, is established when “a meeting of the minds” between the buyer and the seller takes
place.

Q: Are there standard ways to determine how much a home is worth?
Yes. A comparative market analysis and an appraisal are the two most common and reliable ways to determine a home’s value.

Your REALTOR can provide a comparative market analysis, an informal estimate of value based on the recent selling price of similar neighborhood
properties. Reviewing comparable homes that have sold within the past year along with the listing, or asking, price on current homes for sale should
prevent your from overpaying.

A certified appraiser can provide an appraisal of a home. After visiting the home to check such things as the number of rooms, improvements, size and
square footage, construction quality, and the condition of the neighborhood, the appraiser then reviews recent comparable sales to determine the
estimated value of the home.

Lenders normally require an appraisal – which runs between $200 to $300 – before they will approve a mortgage loan. This protects the lender by
You also can check recent sales in public records, through private firms, and on the Internet to help you determine a home’s potential worth.

Q: What is the difference between list price and sales price?
The list price is a seller’s advertised price, or asking price, for a home. It is a rough estimate of what the seller wants to complete a home sale. A seller
can price high, low – which does not happen very often – or very close to what they hope to get. A good way to determine if the list price is a fair one is
to look at the sales prices of similar homes that have recently sold in the area. The sales price is the actual amount a home sells for.

Q: What about appraised value and market value?
A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on
comparable sales, the condition of the property, and several other factors.

Market value is the price the house will bring at a given point in time, once the buyer and seller establish a “meeting of the minds” on price.
Closing Costs

Q: What are closing costs?
Q: Is it possible to save on closing costs?
Q: Is there anything I should know about closing day?

All information being provided is for consumer’s personal, non-commercial use and may not be used for any purpose other than to identify prospective
properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed.

Appraisals and Market Value

Q: How do you determine how much a home is worth?
The short answer: a home is ultimately worth what is paid
for it. Everything else is really an estimate of value. Take, for
example, a hot seller’s market when demand for housing is
high but the inventory of available homes for sale is low.
During this time, homes can sell above and beyond the asking
price as buyers bid up the price. The fair market value, or
worth, is established when “a meeting of the minds” between
the buyer and the seller takes place.

Q: Are there standard ways to determine a home’s worth?
Yes. A comparative market analysis and an appraisal are the
two most common and reliable ways to determine a home’s value.

Your REALTOR can provide a comparative market analysis,
an informal estimate of value based on the recent selling
price of similar neighborhood properties. Reviewing
comparable homes that have sold within the past year along
with the listing, or asking, price on current homes for
sale should prevent your from overpaying.

A certified appraiser can provide an appraisal of a home.
After visiting the home to check such things as the number
of rooms, improvements, size and square footage,
construction quality, and the condition of the neighborhood,
the appraiser then reviews recent comparable sales to
determine the estimated value of the home.

Lenders normally require an appraisal – which runs between
$200 to $300 – before they will approve a mortgage loan.
This protects the lender by You also can check recent sales
in public records, through private firms, and on the Internet
to help you determine a home’s potential worth.

Q: What is the difference between list price and sales price?
The list price is a seller’s advertised price, or asking price,
for a home. It is a rough estimate of what the seller wants to
complete a home sale. A seller can price high, low – which
does not happen very often – or very close to what they hope
to get. A good way to determine if the list price is a fair one
is to look at the sales prices of similar homes that have
recently sold in the area. The sales price is the actual amount
a home sells for.

Q: What about appraised value and market value?
A certified appraiser who is trained to provide the estimated
value of a home determines its appraised value. The
appraised value is based on comparable sales, the condition
of the property, and several other factors.

Market value is the price the house will bring at a given point
in time, once the buyer and seller establish a “meeting of the
minds” on price.
Closing Costs

Q: What are closing costs?
Q: Is it possible to save on closing costs?
Q: Is there anything I should know about closing day?

All information being provided is for consumer’s personal, non-commercial
use and may not be used for any purpose other than to identify prospective
properties consumers may be interested in purchasing.
Information deemed reliable but not guaranteed.