What is the difference between an Appraisal and a Comparative Market Analysis you may ask. Selling your home can feel like an overwhelming task. As Brokers and Realtors, we walk our clients through each step of the way. Starting with the value of your home we’ll prepare a Comparative Market Analysis of your home. Some Home Sellers may want to hire an appraiser before they put their home on the market, i. e. if you own a unique home and there are no recent comparable sales within your neighborhood. We always can help you point in the right direction.
What is an appraisal?
An appraisal is an unbiased professional opinion of the value of a home and 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 for whenever a mortgage is involved in buying, refinancing, or selling of 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 is appointing an appraiser of his choice. When the appraised value is lower than the purchase price, the transaction can be delayed or even canceled. Appraisals can also be used to determine how much to insure your home for. In addition, appraisals are used to figure out property taxes. So, although an appraisal for a loan 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 nowadays 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 probably sales price of a property.
What is a Comparative Market Analysis
How are CMA’s (Comparative Market Analysis) different from appraisals? The purpose of a CMA is to establish an accurate range of value for a property that a seller wishes to sell. An accurate range is one that reflects market conditions at the time and place of the desired transaction. After an accurate 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 Englewood and Rotonda West. I believe you deserve access to the most current, objective and comprehensive information affecting the value of your home. If I can be of any assistance for your current or future real estate needs, please don’t hesitate to contact me.
Automated Valuation Models (AVM)
Automated Valuation Models (AVM) are now also used by lenders and Brokers and Home buyers and Sellers. They offer a certain range of values and indicate a confidence score. Realtors also use the RVM (Realtor Valuation Model). These values can be used as a starting point. We always do a visual home inspection to come up with the most accurate value.
Everyone knows Zillow’s most favorite feature called the Zestimate. They use an algorithm with lots of variables and information sources. But one of the most controversial aspects of the “Zestimate” is the fact that it provides a single price estimate, instead of a range. And this is by design. Zillow never inspects a property and that is why the values are sometimes seriously off.
Have you had any thoughts on selling your Englewood Home?
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 watch the value of your home, before talking to a real estate agent. Before you get involved in the process educate yourself with our selling guide. In this guide we dive into a 7 important things to consider before deciding to sell your home.
More Questions? Feel free to contact us below.