Maybe you aren't interested in putting your house on the market, and just want to get an idea of what it's worth. Or perhaps you really are thinking about a for-sale sign in the front yard and need to learn what to expect from its value. There are certainly plenty of reasons to find out what your largest personal investment is worth. And for each of them, we can help you find out
It Starts With A Free CMA Request
A Comparative Market Analysis, also known in the industry as a CMA, is a special report prepared by your Realtor, It's used to estimate a home's realistic market price or value on the local real estate market. Although the format varies with each company and from agent to agent, a CMA typically includes:
- A review of comparable properties in the immediate area that are currently on the market.
- The number of bedrooms and bathrooms, lot size, architectural style, square footage, special features, These include items such as: a swimming pool, spa, panoramic city, mountain or ocean view, year built, location, asking price and number of days on the market.
- A review of comparable homes currently under contract (in escrow) with all available pricing information.
- A review of comparable properties that have closed in the past 6 months, with final selling price.
The key to remember about a CMA - if properly researched, it will give you the hard numbers necessary to reach a realistic pricing decision. The price range you get from an agent using a CMA may well be lower than you get from agents who don't use one. However, the odds are strong that your house will actually sell within the CMA's suggested range rather than at the higher price. And it will sell quicker, because the CMA emphasizes market reality, not the upper limit sales price many of us prefer to hear.
The big advantage of a CMA is that they are free, unlike appraisals which can cost several hundred dollars without any assurance that they are more accurate.
Have you ever wondered why the market value of your house differs from your lender's assessment? And what values are being used to set and/or increase your property tax bill? It's easy to be confused about the different valuations being used in the home buying and selling process. Knowing a home's value or worth in the real estate market will help you get a fair sales price.
A Comparative Market Analysis (CMA), performed by an experienced Realtor like ourself, can determine a reasonable listing price for your home. When we prepare a CMA, I consider a number of factors. These include the home's size, age, location and amenities. I also researches the list prices of properties that are currently for sale. Also, those that have recently sold or expired in your neighborhood.
An appraiser (used by a lender) determines the market value of your property by looking at the supply and demand of like properties in the area. They compare your property with others that have recently sold. This helps them determine the amount of money it would take to replace your home at current material and labor costs. It's also used to determine how much income a property would produce - (this last approach is used more often for rental property, apartments and commercial property). Lenders frequently require a professional appraisal upon which to base your loan amount. Local governments also perform independent appraisals to gauge your home's assessed valuation for fair property tax.
When comparing the CMA and the appraised values, don't be surprised if they do not match. There are a number of reasons that these differences occur.
The "market value" determined by the appraisal can be different from the "market price" determined through a CMA. In essence, the appraisal amount reflects the cost of replacing your home. But the goal of the CMA is to determine a price that someone will pay for your house. The sale price can be much different from the appraisal value, especially if there are multiple offers on the property.
I can help you determine your home's worth by researching it history and performing a Comparative Market Analysis. Please call Con (408) 509-2124 to discuss the current real estate conditions that affect the market price of your property or submit a short form to the right to receive a free "Comparative Market Analysis" of your property.