Appraisal versus Comparative Market Analysis
Selling your home can feel like an overwhelming task. As Realtors, we walk our clients through each step of the way, including the process of getting an CMA. Not knowing who you’re working with can be nerve-racking, and we can recommend trustworthy appraisers to get an evaluation of your property. We’d like to share some of our knowledge about appraisals/CMAs with you and offer you a complimentary report specific to your neighborhood that we have created. However, keep in mind that appraisals are only performed by licensed appraisers - CMAs are performed by Realtors!
What is an Appraisal?
Appraisals can also be used for loan or insurance purposes
What is a Comparative Market Analysis (CMA)?
Keep in mind that appraisals are different from CMAs (Comparative Market Analysis). Using our knowledge and expertise, we compile a CMA for our clients to determine how much their home will sell for within a particular time. That includes neighborhood data, sold homes in the neighborhood within a specific time frame, comparable homes, and the exterior/interior condition of the seller's home. So, keep in mind that a CMA is not an appraisal; only a licensed appraiser can perform an "appraisal." Banks and Insurance Companies will later on send out an appraiser because they need an "official document".
A CMA is a "Price Opinion"
Now, what actually is a CMA? A CMA is more like a "price opinion," but what is wrong about that? It gives the seller a pretty accurate picture of the current market situation in specifically his market environment, and the more the seller knows about the market, the better he can ascertain the price. "Those who have knowledge don't predict. Those who predict, don't have knowledge." Lao Tzu
It doesn't make sense to overprice the home and hope for the best. In everybody has a pc, tablet or smart phone, and knows how to use it. All the information is easily accessible - hoping for the best is no sales strategy anymore. You need a better plan.