Kathy Shank
ERA Liberty Realty 304-676-7881

Appraisals vs. Market value

Appraisals vs. Market value
These terms are separate but equally important measures used when discussing the value of a home.
The market value of a home is determined by how much buyers are willing to spend to complete the home purchase.  When buyers decide on a proposed sale price for a property, they take the following factors into consideration: The asking price, the competition, the condition of the home, and the interest in the property.  The market value shows the seller how much money they can expect to earn from the sale of their home in the current market.
Once the home is under contract, it will likely have to undergo an appraisal.  Mortgage companies require appraisals to verify that the home is worth the proposed purchase price.  (To ensure they'll be able to sell the property to cover any losses in the event that the buyer fails to pay back the loan.)  The appraiser will evaluate the following factors before making a decision:  Location, square footage, number of bed and bathrooms, age & condition of home, recent renovations, and compared homes in your area.