Market Value vs. Sales Price
Market value is an opinion of value based on a detailed analysis of relevant data. It is the price that a property could bring in an open market between a willing buyer and a seller, with no outside influences or barriers to sale or purchase.
The sales price is the price a seller is willing to set and the price a buyer may be willing to pay for a property. Sales price may or may not represent that property's market value.
Home Inspection for Mortgage Financing
An appraiser inspects homes to determine its quality, condition and functional utility. The inspection is an essential step in developing an accurate opinion of value. For mortgage refinancing and PMI removal, preparing your home for the inspection benefits everyone including the house itself. Tidy up — the appraiser takes both interior and exterior photos that are seen by the underwriter/lender. Finish the smaller home repairs — avoid having the appraiser make a "cost-to-cure" adjustment which lowers the value conclusion. Remodeling — either complete the remodel prior to the inspection or don't begin the remodel until after the inspection. The appraisal report provides an "AS-IS" value as of the date of the inspection. Incomplete remodeling may require the appraiser to write the report 'subject to' completion which may delay or worse, stop the funding of the loan.
Appraisal or CMA for Determining a Sale Price
Hasson Appraisal Service is often asked to make an independent appraisal for determining a sale price. Although this is one of the valuations services performed, especially for complex residential properties, a competent, local real estate agent can perform this analysis, too. Real estate agents produce a comparative market analysis (CMA) and it is typically a no-cost service to prospective sellers and buyers. Real estate agents create CMA reports to help sellers set listing prices for their homes and, less commonly, to help buyers make competitive offers.