Selling Your Home - Appraisals & Market Value

What's the difference between market value and appraised value?
The appraised value of a house is a certified licensed appraiser's opinion of the home's value at a given point in time. Lenders require appraisals as part of the loan application process, and will not allow the buyer to borrow more money than the appraised value of the property which shall include any closing costs rolled into the loan. Appraisal report costs range from $400 and up, depending on the size of the property.

Market value is the 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. You will need an experienced RE/MAX realtor to preform this analysis prior to placing your home on the open market. 

Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth. It's best not to guess, hire a professional!

What standards do appraisers use to estimate value?
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, contact the Appraisal Institute at 200 W. Madison, Suite 1500, Chicago, IL 60606, 7 a.m. - 5 p.m. CT; 888-7JOINAI (754-4624).