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Buying Your Home - Appraisals & Market Value

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 cost about $350.  

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. Most agents will give you a comparative market analysis for free. 

What is the difference between list price, sale price and appraised value?
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 sale 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 other factors.

What is the difference between market value and appraised value?
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 $300 to $400.  

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. 

Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.


Shelley Arding
Shelley Arding
Associate
102-2748 Lougheed Hwy Port Coquitlam BC V3B 6P2