How is a home's value determined?

You have several ways to determine the value of a home. A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents determined what a home is worth.

An appraisal is a professional estimate of a property's market value; based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home.

Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood.

What is the difference between market value and appraised value?

Appraised value 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 can range from approximately $200 to $300.

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 or broker.