Comparative Market Analysis and why you really need an appraisal
- January 22nd, 2017
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If you’re looking to sell or buy a home, you’re about to go through one of the most stressful and rewarding processes of a lifetime. There are hundreds of things involved and thousands of things to consider. One of the many things you may come across is called a Comparative Market Analysis, or CMA for short. A CMA endeavors to give sellers an estimation of what their listing will be, as well as subjective ventures about the property and expected process. Ie – will it sell quickly and well? A CMA will also include an analysis of comparatively sold homes that are similar to yours. Comparables are used in appraisals – legal valuations of your home – and can often predict what you can expect your home is valued at and might sell for. Here’s what to expect from your CMA. There should be a complete look over of your house including square footage, number of rooms, amenities, location, improvements (made or needed), and often even a general status of the property, including the land. Now that an agent knows your house aa little better, they will begin looking at the comparables. These will include recently sold “like” homes as well as pending and expired or withdrawn listings. The listings will typically be from within the past six months. Acess to this kind of information is often difficult for typical do-it-yourself sellers. Which is how agents get their listings. What they don’t tell you is that a seller’s market (not as many homes for sale) is a great time to list. However, a buyers market might not be. Never be pressed to list before you’re ready. Another thing to keep in mind is that a CMA is not an official document, merely an estimate. You’ll need an appraisal for a legal valuation of your home. This can come in handy for tax disputes, division of property, renovations, and is necessary for legal home sales. Many appraisals will be done through the lender, as per their requests, but realtors and homeowners can request them as well. To schedule any of your appraising needs, feel free to give us a call at Aspen Appraising. We’re happy to help you get one and get done so that you can focus on other important matters in your life.