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JC, Other/Just Looking in Exeter, PA

What is a home appraisal based on, the listed price of homes in the area or the actual selling price?

Asked by JC, Exeter, PA Thu Mar 5, 2009

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Hey Guys; this is FOUR YEARS OLD!!!!
0 votes Thank Flag Link Tue Jun 25, 2013
JC: Sold Price
Donna; you a Lawyer or some such?
0 votes Thank Flag Link Tue Jun 25, 2013
The appraisal price is based on the property valuation or land valuation process of valuing real property for a bank mortgage.
0 votes Thank Flag Link Tue Jun 25, 2013
Hey JC,

Sold price :)
0 votes Thank Flag Link Wed Feb 17, 2010
When you refer to an appraisal, there are three different sources for that amount. First, the REALTOR will check the multilist for sales of comparable properties near the house that has been sold. In the industry, we refer to these as "comps". They do not go into much depth or analysis and to factor in some differences as was cited such as square footage, lot size, and extra features. Anyone with multilist access can do these. Second is value is called a Brokers Price Opinion. REALTORS, or their boss the Broker, may do these. They rely more on knowledge and experience, but sometimes are not even located in the same geographic area. The last is an appraisal done by a state licensed appraisal. This is the valuation relied upon by the banks or mortgage companies. It is the most comprehensive analysis and costs the most money. Sometimes these people are also REALTORS, but most of the time they are not. The amount of the mortgage is based on their valuation, so most often this is most powerful of the price opinions.
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0 votes Thank Flag Link Wed Feb 10, 2010
Both the responses here answered you - that it is based on selling price. When there aren't any homes similar enough to the property being appraised, the appraiser will take the closest comparable home and either add or subtract the price based on features found in the various homes. For example, if a home sold for $150,000 with no garage and the one being appraised has a garage, the appraiser will take the $150,000 and add the price of a garage to it to come up with the appraised value. Likewise, if the home with the garage sold for $150,000 and the home being appraised does not have a garage, the price will be less than $150,000. The appraiser must do this for various differences between the homes he/she picked as comparables. The differences must be things that increase/decrease the value of a home - not like window treatments or a pool or other differences that have no impact on price.
0 votes Thank Flag Link Thu Mar 5, 2009
Just my additional two cents. Real estate agents are only allowed to give you a price range of what you should be able to get for the property whereas the appraiser are licensed to give you an exact amount. The are specifical trained to to make the proper price adjustments compared to the other properties.

But in essence, they both compare sold properties to come up with a value.

Hope that helps,

Terrence Charest, e-Pro
0 votes Thank Flag Link Thu Mar 5, 2009
Appraisals are based on homes sold. A seller can ask anything for their home, but when it comes down to a buyer getting a mortgage, the lender sends an appraiser out to evaluate the home. He then takes that information and compares it with similar homes that have sold in the neighborhood in the last 6 months. If the agreed upon price is more then the appraisal, the buyer can walk away from the deal with their deposit. Or the deal needs to be renegotiated. I'm sure that covers your question, but, I could go into why it is not a good idea for a seller to overprice their home. If you are interested in more information, feel free to contact me. Thanks, Kathleen
0 votes Thank Flag Link Thu Mar 5, 2009
Home appraisals should be based on homes that are comparable in size, neighborhood, and amenities that have sold in the last 3-6 months. Listing prices should not be a factor on appraised values.
0 votes Thank Flag Link Thu Mar 5, 2009
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