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Value of Your Home?
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Home Price Appreciation
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Q: |
What is the
difference between market value and appraised value?
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A: |
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
range from $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. |
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Q: |
How do you
increase the value of your property? |
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A: |
The biggest
factor outside of a homeowner's control is market
conditions. But other issues -- including the condition
of the property, specific home improvements and
neighborhood stability and safety -- can influence
property values.
The greatest rise in home prices occurs when the
economy is strong and the number of home sales is
increasing.
Though markets vary, that has occurred twice in
recent history -- in the early 1970s and the late 1980s.
However, single-family homes appreciated much more than
condominiums. While overall market conditions are out of
the homeowner's control, other factors are not.
For example, specific home improvements can increase
the value above the cost of the improvements. According
to Remodeling magazine, which publishes an annual "Cost
vs. Value" remodeling report, a remodeled bathroom
returns 81percent to the owner, a bathroom addition, 89
percent and a master bedroom suite, 82 percent.
Remember, quality pays. Well-planned and
well-executed remodeling jobs are a good investment
while bad work seldom enhances value or livability.
If you live in a high-crime area, an organized
community watch program not only will lower the crime
rate but also have been known to enhance property
values. |
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Q: |
What are the
standard ways of finding out what a house is valued at?
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A: |
A comparative
market analysis and an appraisal are the standard ways
consumers, lenders and realty agents deterimined what a
home is worth.
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. You
also can research "the comps" yourself by checking on
recent sales in public records. Be sure that you are
researching properties that are similar in size,
construction and location.
This information is not only available at your local
recorder's or assessor's office but also through private
companies and on the Internet.
An appraisal, which generally cost $200 to $300 to
perform, is a certified appraiser's opinion of the value
of a home at any given time. Appraisers review numerous
factors including recent comparable sales, location,
square footage and construction quality.
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Q: |
How can I
improve the value of my property? |
|
A: |
The biggest
factor outside of a homeowner?s control is market
conditions. But other issues -- including the condition
of the property, specific home improvements and
neighborhood stability and safety -- can influence
property values.
The greatest rise in home prices occurs when the
economy is strong and the number of home sales is
increasing. Though markets vary, that has occurred twice
in recent history -- in the early 1970s and the late
1980s.
Specific home improvements can increase the value
above the cost of the improvements. According to
Remodeling magazine, which publishes an annual "Cost vs.
Value" remodeling report, a remodeled bathroom returns
81percent to the owner, a bathroom addition, 89 percent
and a master bedroom suite, 82 percent. Remember,
quality pays. Well-planned and well-executed remodeling
jobs are a good investment while bad work seldom
enhances value or livability.
The safety and security of a neighborhood can affect
property values, too. If you live in a high-crime area,
an organized community watch program not only will lower
the crime rate but give home values a boost, too.
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Q: |
Should I add
on or buy a bigger home? |
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A: |
Consider these
questions before making a choice between adding on to an
existing home or moving up in the market to a bigger
house:
* How much money is available, either from cash reserves
or through a home improvement loan, to remodel the
current house?
* How much additional space is required? Would the
foundation support a second floor or does the lot have
room to expand on the ground level?
* What do local zoning and building ordinances permit?
* How much equity already exists in the property?
* Are there affordable properties for sale that would
satisfy housing needs?
Ultimately, the decision should be based on
individual needs, the extent of work involved and what
will add the most value. |
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Q: |
What kind of
return is there on remodeling jobs? |
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A: |
Remodeling
magazine produces an annual "Cost vs. Value Report''
that answers just that question. The most important
point to remember is that remodeling a home not only
improves its livability for you but its curb appeal with
a potential buyer down the road.
Most recently, the highest remodeling paybacks have
come from updating kitchens and baths, home-office
additions and extra amenities in older homes. While home
offices are a relatively new remodeling trend, for
example, you could expect to recoup 58 percent of the
cost of adding a home office, according to the survey.
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Q: |
Where do I get
information on housing market stats? |
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A: |
A real estate
agent is a good source for finding out the status of the
local housing market. So is your statewide association
of Realtors, most of which are continuously compiling
such statistics from local real estate boards.
For overall housing statistics, U.S. Housing Markets
regularly publishes quarterly reports on home building
and home buying. Your local builders association
probably gets this report. If not, the housing research
firm is located in Canton, Mich.; call (800) 755-6269
for information; the firm also maintains an Internet
site. Finally, check with the U.S. Bureau of the Census
in Washington, D.C.; (301) 495-4700. The census bureau
also maintains a site on the Internet. The Chicago Title
company also has published a pamphlet, "Who's Buying
Homes in America." Write Chicago Title and Trust Family
of Title Insurers, 171 North Clark St., Chicago, IL
60601-3294. |
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Cara O'Bryant
Realtor Associate
Licensed
in Mississippi & Tennessee
901-212-0047
 Bob Leigh & Associates Realtors, LLC
6900 Cobblestone Blvd
Southaven, MS 38672
662-890-9696
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