APPRAISAL VS. MARKET VALUE in Colorado: What's the Difference?
What is the return on new versus previously owned homes?
In northern Colorado Springs, buying into a new-home community such as "The Farm", may seem riskier than purchasing a house in an established neighborhood, like "Flying Horse". However, 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. One survey by the National Association of Realtors shows that existing homes have an edge over new homes. The trade group's figures show the median price of resale homes increased 4.3 percent between 1999 and 2000, compared to 2.8 percent for new homes in the same period.
What is a house in Colorado Springs worth?
Ultimately, a home's value is determined by the amount of money that someone will pay for it. Everything else is only 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 $300. A comparative market analysis is a real estate broker's or agent's informal estimate of a home's market value, based on the recent sales of comparable homes in the neighborhood. Most agents will give you a comparative market analysis for free, including Wolff Real Estate Group in Colorado Springs, Colorado. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available through the El Paso County Assessor's office.
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).
Can I find out the value of my home through the Internet?