Appraisals & Market Value
• A Resource For Buyers •
Ultimately, a property is worth whatever the buyer is willing pay for it. Everything else is an estimate of its value. Most people turn to either an appraisal or a comparative market analysis to determine a property's value. Appraisals are a certified appraiser's estimate of the value of a home. Appraisers consider square footage, construction quality, design, floor plan, neighborhood, as well as availability of transportation, nearby shopping and local schools. Appraisers may also consider the lot size, topography, view and landscaping. The cost of an appraisal can range from $300 to $500. A Comparative Market Analysis (CMA) is a real estate broker's or agent's informal estimate of the market value of a property, based on sales of comparable ones in a specific neighborhood. Many agents will give you a CMA for free. You can also do your own comparison by looking up recent sales of comparable properties on Zillow, which draws its information from public records.
You can get a rough estimate of your home's value by searching the Internet. Lots of websites "crunch the numbers" based on public records of recent sales. Some services may even offer an estimate of value based on acceptable software appraisal standards. However, neither of these produce official appraisals acceptable to banks or lending institutions. They also don't consider market nuances or myriad other issues that a certified appraiser or real estate professional might consider when assessing the value of your property.
Differences In Values.
The list price is the seller's advertised price. It is a figure that represents what the seller wants to receive for the property. The list price can be higher or lower than the appraised value. To determine whether or not the list price is fair, we recommend that you refer to comparable sales in the area. The appraisal value is a certified appraiser's estimate of a property worth, and is based on comparable sales, condition of the property, and numerous other factors.
New Versus Existing Homes.
Sometimes, buying a new house in a newer community can be riskier than purchasing an existing home in an established neighborhood. An increase in any home's value depends upon the same factors: Quality of the neighborhood, growth in the local housing market, and the economy overall. One survey by the National Association of Realtors (NAR) showed that existing homes do have an edge over newer houses. The NAR study showed the median price of existing homes had increased 4.3% from 1999 to 2000, compared to 2.8% for newer homes during the same period.
Market Value Versus Appraised Value.
The Appraised Value is a certified appraiser's opinion of the worth of a property. Lenders require appraisals as part of the loan process; fees can range from $350 to $1,200. Market Value is the price a property can bring at any given point in time. A Comparative Market Analysis (CMA) is an informal estimate of the market value based on sales of comparable properties in the same neighborhood, given by a real estate agent or broker. Both appraisals and CMAs are accurate ways to determine what a property is worth.
Values of Distressed Properties.
Buyers considering a foreclosure or distressed property should obtain as much information as possible from the lender, including the range of bids expected. If you are unable to view a foreclosure property, politely check with the neighbors about the property's condition. As mentioned in the Internet Research section, you can do your own cost comparison by researching comparable properties on websites that specialize in property records, such as Zillow.
BC Adobe Realty would love to assist you with the purchase of your Boulder City / Greater Las Vegas Area property. If you have any questions, please reach out to us by email or call (702) 293-1707.