By Cari Gililland GSN Guest Writer
As a Realtor, I often receive questions from my clients about the difference between a CMA (comparative market analysis) and a professional appraisal.
They both have an important place in the home-selling process and both should be considered when determining a listing price for your home.
The CMA is an analysis prepared by a Realtor to help determine a price range or potential value for a home.
There are many things a Realtor takes into consideration when putting together a market analysis.
They include the most recent sales of like properties in the same neighborhood or general area, market conditions and the condition of the property. They are analyzed and compared against the most recent sales, pending properties and homes currently for sale.
A great Realtor will spend hours researching and comparing to determine the best price range for a home seller to consider. There are many websites you can visit to see what is touted as the value of a home. Don’t be fooled!
In most cases, these quick online valuation systems have no way of knowing your home’s true features and benefits – or deficiencies, for that matter. The best way to obtain a true market analysis is to talk to an experienced, reputable Realtor.
The professional appraisal is a third-party, unbiased opinion of value. This value is based on history of sales and verifiable information. A licensed appraiser also spends hours researching to come up with their opinion of value.
Their report is much more formal and complicated in nature and will include general market information, sales data, adjustments for property differences, property photos, any limitations for the report and, of course, the appraiser’s qualifications.
The appraisal is most commonly paid for by the buyer and required by the buyer’s lender to justify the sales price.
Here is your Gilbert real estate update – simple data that even the least analytic person can appreciate. This information comes directly from Arizona Regional Multiple Listing System. Information based on sales between 5/1/18- 7/16/18, single-family homes only.