These are quick and easy, but do not answer questions regarding factors like location and current local trends. Be aware that in practice, the prices arrived at might be highly inaccurate. For example, a home in Ohio was put into one such system, Redfin (https://www.redfin.com/what-is-my-home- worth). The home last sold for $180,000 in 1998 but that amount is no longer accurate; it was appraised for refinancing in 2015 at $275,000.
PROFESSIONAL APPRAISAL
The purpose of a real estate appraisal is to determine a practical estimate of the property’s value, based on the real estate market in the area. How much would the average buyer spend on this property? The problem is that almost every home differs from every other in some way. Even homes with identical floor plans, built side by side and by the same builder, may differ because of their condition and how they’ve been maintained, the size of the lot, corner location, landscaping, reroofing, carpet and window upgrades — this list is almost endless. These features and overall value may have changed dramatically since the last time the home was appraised, so a new appraisal must be conducted. An appraisal helps in various decision points. The seller can use the appraisal as a basis for pricing. The buyer can use it on which to base an offer. Lenders use appraisals to know how much money to credit to their borrowers. The most important factors in a house appraisal are: • dwelling type (e.g., one-story, two-story, split-level, factory-built) • features (including design); materials used and the type of structure present and how they were built • improvements made; comparable sales
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