Timothy E. Lockhart - YOU HAVE OPTIONS: YOUR GUIDE TO AVOIDING FORECLOSURE

• location — type of neighborhood, zoning areas, proximity to other establishments • age of property • size • depreciation

Condition, of course, is a crucial factor in valuation. Location is also a factor, but since property can’t change location, it’s often upgrades or improvements to a residential property that enhance its value. An appraisal professional will examine your home, then prepare an impartial estimate of its current worth. The original selling price is only a starting point, but the appraiser will need to consider the recent sales prices of comparable homes near yours. For this reason, the appraiser needs to be familiar with your local housing market.

CURRENT MARKET APPRAISAL BY A REAL ESTATE PROFESSIONAL

This home valuation is free from real estate professionals and more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months, along with the final sale price. It also includes the specifics of all the houses for sale in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Along with an understanding of how the worth of a home is determined, the current market has to be considered.

EXAMPLE OF DIFFERING HOME VALUATIONS

Let’s say a buyer is interested in a home listed at $420,000. The

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