Appraisals & Market Value
Q: Is there a difference between market value and appraised value?
A: The appraised value is the opinion of worth at a given point in time by a certified appraiser. Appraisers review numerous factors including recent comparable sales, location, square footage, construction quality, design, floor plan, neighborhood, availability of transportation, shopping and schools amenities, and even energy efficiency. Appraisers also take lot size, topography, view and landscaping into account. An appraisal can be pretty indepth and detailed! Banks will require appraisals as part of the loan application process and it will cost you at least $300 or more!
A CMA or comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Click here too read a more in depth description of a CMA or comparative market analysis.
Q: What is the best way of finding out the value of a home in Upstate SC?
A: While the online methods seem the easiest and quickest method to determine the value of a home in Upstate SC, the reality is that either a CMA or an appraisal are the standard ways consumers, lenders and REALTORS determined what a home is really worth. Relying upon any other method may just be shooting yourself in the foot as the accuracy of the online methods has been shown to quite low when compared to the use of a local real estate professional such as an appraiser or REALTOR.
I will be happy to provide a FREE Comparative Market Analysis but in my opinion an appraisal, even though it is not free, is a highly effective tool to use in marketing a home if you can price your home at OR below the appraised value.
Q: What's a house worth?
A: A home is worth what a buyer is willing to pay and a seller is willing to accept. To determine a property's value in Upstate South Carolina, most people turn to either an appraisal or a CMA.
Q: What are the standards that appraisers use to estimate value of a home?
A: Appraisers use several factors when estimating value including historical records, property performance, condition of the home and indices that forecast future value. For detailed information on appraisal standards, contact the Appraisal Institute at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980; (312) 335-4458.
Q: What is the difference between list price, sales price and appraised value?
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 or realistic price, it is best to have a buyers agent assist you in determining by looking at recent comparable sales prices in the area.
The sales price is the amount of money a buyer would pay for a home and a seller agreed to. Hopefully it will be below both the appraised value, recent sold comps and the list price! One thing to remember is that the recorded sales price does not always reflect any seller paid concessions, such as closing costs etc.
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. Remember even if you are willing to pay more than the appraised value, the bank will not lend you more than the appraised value!
Q: Can I find out the value of my home through the Internet?
A: You can but I really hope you do not! While it is possible to get a ballpark figure of your home's value by searching the Internet, this is not the best method! None of these websites produce official appraisals or even results that most experienced real estate professionals or lending institutions consider as accurate. These websites do not factor in local market conditions or other issues a local experienced certified appraiser or REALTOR might consider when assessing the value of your Upstate South Carolina home.
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