You may ask, what is the difference between an Appraisal and a Comparative Market Analysis? Selling your home can feel like an overwhelming task. As Brokers and Realtors, we walk our clients through each step to closing. The first step is a Comparative Market Analysis of your home. This will be our starting point for setting a listing price. Some Home Sellers may want to hire an appraiser before putting their home on the market because if you own a unique home and there are no recent comparable sales within your neighborhood.
What is an appraisal?
An appraisal is an unbiased professional opinion of the value of a home and is generally used to value collateral in a real estate transaction. Appraisals are required for most federally related transactions above $250,000. In practice, appraisals are used whenever a mortgage involves buying, refinancing, or selling a property.
A licensed and certified appraiser creates a report based on a visual inspection, using recent sales of similar properties, current market trends, and aspects of the home (e.g., amenities, floor plan, square footage) to determine the property’s appraisal value. When getting a mortgage, the buyer’s lender appoints an appraiser of his choice. The transaction can be delayed or canceled when the appraised value is lower than the purchase price. Appraisals can also determine how much to insure your home for. In addition, appraisals are used to figure out property taxes. Although a review for a mortgage estimates today’s market value, one for insurance purposes is used to determine what it would cost to rebuild your home with the associated costs of today.
Lenders often use Broker Price Opinions for short sales or foreclosure properties to determine a listing price. Brokers and Realtors can prepare Broker Price Opinions to estimate a probable sales price of a property.
What is a Comparative Market Analysis
How is CMA’s (Comparative Market Analysis) different from appraisals? The purpose of a CMA is to establish a range of value for a property that a seller wishes to sell. An accurate range reflects market conditions at the time of the transaction. After a property value range has been determined, the CMA is used to help sellers identify an asking price. In other words, a CMA provides an objective, market-driven starting point for pricing properties.
We specialize in selling homes in the greater area of Englewood and Rotonda West. We believe you deserve access to the most current, objective, and comprehensive information affecting the value of your home.
Automated Valuation Models (AVM)
Both Lenders and Real Estate Brokers use Automated Valuation Models (AVM). They offer a specific range of values and indicate a confidence score. Realtors use the RVM (Realtor Valuation Model), as well. We always do a visual home inspection to calculate the most accurate home value and take your home’s unique features into account. There is no substitute for a local and experienced Realtor, having extensive knowledge of the area.
Everyone knows Zillow’s favorite feature, “the Zestimate,” is also an AVM. There are more automated valuation models available to us. Each provider uses different variables to arrive at a value. All models are great for having a starting point, but in the end, nothing compares to a personal visit to see the home and compare it to other homes in the area.
Have you had any thoughts on selling your Home in Rotonda West?
The 2020 real estate marketing is changing quickly. See how that is impacting your home value. If you are not yet ready to talk about selling, you may want to receive an instant home value estimate before talking to a real estate agent. We’ll provide you with a selling guide before you start the listing process. Here you can dive right into the seven essential things to consider before putting your home on the market.
Please don’t hesitate to reach out if we can assist with your real estate needs.