Essentially, a home is worth what someone will pay for it. Everything else is simply an estimate of value. To determine a property’s value, most people turn to either an appraisal or a comparative market analysis. Below are the different options that you have to determine the value of your home.
An appraisal is a professional estimate of a property’s market value, based on square footage, location, construction quality, and recent sales of comparable properties. An appraisal service varies in cost depending on the price of the home. Additionally, appraisers can also take design, floor plan, neighborhood, availability of transportation, shopping, schools, amenities, and energy efficiency, lot size, topography, view and landscaping into account.
A comparative market analysis (CMA) is an informal estimate of the home’s market value performed by a real estate agent based on similar sales and property attributes as defined by the appraisal. Most agents offer a free analyses in attempt to get the opportunity to assist you in selling your home.
Market Value vs Appraised Value
Appraised value is a certified appraiser’s opinion of the worth of a home at any given point in time. Lenders require appraisals as part of the loan application process.
Market value determines 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. It can also be given by a real estate agent.
For more information and assistance on selling your home, contact John Byers today.