The Sarasin Team Discuss Selling Your Home - Appraisals & Market Value
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; fees range from $200 to $300. 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.
What's a house worth?
ultimately is worth what someone will pay for it. Everything else is an estimate
of value. Lenders, however, rely on appraisers to determine a property's value and will not lend for more than the property is worth. So The appraisal is critical for both the buyer and the seller. The seller who does not agree with an appraisal can challenge the appraisal but in most cases, the appraisal value is upheld. Meaning that the sellers must reduce the asking price to the appraised value, ask the buyers to pay the difference, split the difference with the buyer or they may decide not to go through with the sale. The seller will now have to look for a Cash Buyer only because the appraisal sticks with the house for a minimum of (6) months. Sellers most times believe that there home is the best available in there neighborhood and in some cases it may be, but for loan deals the price hinges on the appraised value. So for sellers looking for above market price for their home, as agents we always recommend focusing our sales efforts on finding cash buyers
When Comparing Appraisals to CMA's 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 cost
about $300-400.00. A comparative market analysis is a real estate broker's or agent's
informal estimate of a home's market value, based on sales of comparable homes
in a neighborhood. As your agent, we always provide you a comparative market analysis for
free. You can do your own cost comparison by looking up recent sales of
comparable properties in public records. These records are available at local
recorder or assessor offices, through private real estate information companies
or on the Internet.
As South Florida Real Estate Experts, Our goal is to provide as much data when determining what our buyer clients should offer and what to price our seller clients should sell their home for. Our goal is to get the best deal for every client we represent.
Dale Marie and I give honest advice based on current market conditions when determining pricing strategies for every sale we manage.