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Real Estate Agents questions, answered by experts

Gather details of recent improvements, property documents, and any previous appraisals or inspections.

No, the appraisal value comes from an appraiser and is a professional opinion of value based on property location and condition, while the market value is determined solely by what buyers are willing to pay for your home. Lenders normally use appraised values to ensure they’re staying within target loan-to-value (LTV) ratios—the market value is simply what the home sells for. Appraised value can sit above or below market value.

You should aim to have three or more bedrooms for the best resale value, and having four bedrooms is considered the gold standard. Having just two bedrooms is a functional obsolescence for larger family sizes, so a minimum of three bedrooms is ideal. Adding square footage from additional bedrooms will almost always be worthwhile, though, and can easily provide an ROI of 70%.

Factors considered in a property appraisal include its size, location, and overall condition, as well as recent comparable sales (comparables) and current market trends.

Both conventional loans and FHA loans are types of mortgages, but they have a few key differences. Conventional loans are backed by private lenders without any government backing, and FHA loans are guaranteed by a government agency. FHA loans are designed to be easier for borrowers with low credit scores or income to qualify for.

The La Luz, NM homeowners’ guide to real estate services

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