What is My Home Worth in New Orleans?

Every home is unique.    There is no way to estimate in advance the absolute and definitive selling price of a home with 100% certainty - BUT - we can come really close and hit the mark many times.!


Appraisals

 
State Licensed Appraisers base their appraisals upon their detailed examinations of comparable properties that sold and your home as well as many other complicated conditions.   Their standards for home appraisals make clear the level of detail that is required and what may be relied upon. An Appraisal is required for a home loan since the Lender can rely on a highly detailed analysis of factors that insure the home has enough value to secure the loan.   Appraisals are not required for cash sales with no financing but it is well advised to obtain one. Fees for residential appraisals can easily exceed hundreds of dollars depending upon complexity and market forces.


Automated Valuation Websites


Some real estate websites attempt to develop an automated estimate of value for a home.  These have been widely been branded and panned as inaccurate in most cases. Most are used as a marketing strategy to obtain your business using an analysis of price per square foot and other factors.  They might not be using comparables from an area that is relevant or may not have enough comparable for a reliable statistical analysis among other failings. These are usually free and are designed to engage you into doing business with them.


Automated Valuation Software


These can be quite complicated and very expensive. A good resource to review the advantages and disadvantages theories of automated valuation software can be found here.


Broker Price Opinion (BPO) or Competitive Market Analysis (CMA)


 By far, this is the most commonly used way in the United States to obtain an “Opinion of Value”   of a home. They are routinely performed by real estate agents. BPO’s /CMA’s are NOT a substitute for an Appraisal. However, they serve a valuable purpose.  They are widely used as a cost and time effective tool    by Lenders and Consumers to estimate a probable selling price or range.    The accuracy of the work done is directly proportional to the experience and work effort of the real estate agent.  As an example, a real estate agent who routinely successfully lists and sells high end condominiums in a particular area will likely be more accurate in their BPO/ CMA for that type of real estate.  Many times the real estate agent may perform them for free in an effort to secure business.