Determining the Value of Your Home
A Comparative Market Analysis (CMA) is essential to determine the value of your home. Location and characteristics of the property are the key elements in determining value. Therefore, the basis for valuation is similar properties in your area.
The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.
The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.
What is Appraised Value?
Appraisals provide an objective opinion of value, but it’s not an exact science so appraisals may differ. For buying and selling purposes, appraisals are usually based on market value — what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes.
Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Appraised value doesn’t take into account special considerations, like the need to sell rapidly. Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.
*Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.com
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