Helpful Advice
Get the answers on home selling and buying.
|
 |
About Property Value and Appraisals
You probably already know that your home's assessed value is not necessarily its true market value. But what is the difference between the market value and an appraisal? Generally, the market value is an an estimate you might receive from someone doing a comparative market analysis. Lenders will not loan money to buyers on the basis of such an analysis, since it usually comes from a real estate agent or broker who is trying to get a seller's business. As a seller, you will be required to get a professional appraisal, at a cost of up to several hundred dollars, which will take into consideration a great deal of factors, such as market values in your area, location, condition, features, etc. A professional appraisal will help you make a better determination about pricing your home to sell.
Even then, don't expect to sell for a home's appraised value. A home is worth only what a particular buyer is willing to pay for it. There may be non-tangible/psychological factors which could surprisingly drive the selling price of your home even higher (or lower) than you expect.
So your neighbor sold his home for X amount and you're not finding any buyers willing to pay as much for your nearly identical home? Well, there may be some factors you have not considered, which were taken into account during each property's professional appraisal. For example, your neighbor might have lower energy bills or central air or more meticulous and expensive landscaping. The best way to find out what you should ask for your home is to buy the services of an appraiser.
