Appraisal value for mortgage financing approval.

First, it's important to understand from both a mortgage
borrower's point-of-view and a seller's point-of-view that a
house or property should appraise for at least the
purchase or sales price of a given property. If the
appraised value of a property doesn't at least meet the
property's selling price, it's very unlikely the borrower will be
able to obtain a mortage on the property. And, that being
the case, the seller will have a difficult, if not impossible
time in selling the house due to the fact that no buyer may
be able to obtain a mortgage for its purchase.

You have several ways to determine the value of a home.
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. On average, an appraisal costs about $300-
$350 for a typical house. A comparative market analysis is
an informal estimate of market value performed by a real
estate agent based on similar sales and property
attributes. If you're selling a house, most Realtors offer free
analyses in the hopes of winning your business. You also
can get a comparable sales report for a fee from private
companies that specialize in real estate data or find
comparable sales information available on various real
estate Internet sites.

Appraisers use several factors when estimating a home's
value, including the home's size and square footage, the
condition of the home and neighborhood, comparable
local sales, any pertinent historical information, sales
performance and indices that forecast future value. For
detailed information on appraisal standards, contact the
Appraisal Institute at 550 W. Van Buren St, Suite 1000,
Chicago, IL 60607; (312) 335-4100.