Buying Your Home - Appraisals & Market Value
What is the return on new versus previously owned homes?
into a new home community may seem riskier than purchasing a house in an
established neighborhood, but any increase in home value depends upon the same
factors: quality of the neighborhood, growth in the local housing market and the
state of the overall economy.
What's a house worth?
A home ultimately is worth what
someone will pay for it. Everything else is an estimate of value. To determine a
property's value, most people turn to either an appraisal or a comparative
market analysis. An appraisal is a certified appraiser's estimate of the value
of a home at a given point in time. Appraisers consider square footage,
construction quality, design, floor plan, neighborhood and availability of
transportation, shopping and schools. Appraisers also take lot size, topography,
view and landscaping into account. Most appraisals start at about $350 plus GST. A
comparative market analysis is a real estate agent's informal
estimate of a home's market value, based on sales of comparable homes in a
neighborhood. Tony specializes in preparing CMAs for his clients and will happily answer any questions in this area.
What standards do appraisers use to estimate
Appraisers use several factors when estimating a home's value,
including the home's size and square footage, the condition of the home and
neighborhood, comparable local sales, any pertinent historical information,
sales performance and indices that forecast future value. For detailed
information on appraisal standards visit https://www.aicanada.ca/province-alberta/alberta/.
I find out the value of my home through the Internet?
You can get some
idea of your home's value by searching the Internet. A number of websites and
services crunch the numbers from historic public records of home sales to
produce the statistics. Some services offer an actual estimate of value based on
acceptable software appraisal standards. They also depend on historic home sales
records to calculate the estimate. Neither of these services produce official
appraisals. They also don't factor in market nuances or other issues a certified
appraiser or real estate professional might in assessing the value of your
What is the difference between list price, sales price and
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 one, be sure to consult comparable sales prices in the area. The
sale price is the amount of money you as a buyer would pay for a property. 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
What are the standard ways of finding out how much a
home is worth?
A comparative market analysis and an appraisal are the
standard methods for determining a home's value. Tony will be
happy to provide a comparative market analysis, an informal estimate of value
based on comparable sales in the neighborhood. Be sure you get listing prices of
current homes on the market as well as those that have sold. You can also do this yourself, however, be sure
that you are researching properties that are similar in size, construction and
location. As we are in the business of selling real estate, Tony's job is to study local current market trends. As a result, he can provide a CMA showing a close range for suggested list price and a probable final sale price. An
appraisal, is a certified
appraiser's opinion of the value of a home at any given time. Appraisers review
numerous factors including recent comparable sales, location, square footage and
How do you determine the value of a troubled
Buyers considering a foreclosure property should obtain as much
information as possible from the lender, including the range of bids expected.
It also is important to examine the property. If you are unable to get into a
foreclosure property, check with surrounding neighbors about the property's
condition. Tony would be happy to discuss any concerns in this area as well.
What is the difference between market value and appraised
The appraised value of a house is a certified appraiser's opinion
of the worth of a home at a given point in time. Lenders require appraisals as
part of the loan application process. Market
value is 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, performed by a real estate agent or broker. Either an
appraisal or a comparative market analysis is the most accurate way to determine
what your home is worth. Contact Tony, he will happily answer any further questions.