What’s the difference between a comparative market analysis and an appraisal?
Appraisal: An estimate of real estate value, usually issued to standards of FHA, VA, and FHMA. Recent comparable sales in the neighborhood is the most important factor in determining value. This should be contrasted against the home inspection. These are performed by a licensed appraiser. Find out more about getting the best home appraisal.
Comparative Market Analysis: Sales that have similar characteristics as the subject property and are used for analysis in the appraisal process. Usually done by a real estate broker or agent.
When doing a CMA (comparative market analysis) for a homeowner thinking of selling their home, real estate agents look at other homes that have recently sold. So as to compare apples to apples, they want to use homes that are similar in size, location, age, type, etc. For example, a 2 bedroom condo would not be a comparable for a luxury home. This will help you and your agent come up with the best price to market your home. Appraisers also use comparable sales data in determining the appraised amount when requested by a lender for a mortgage or re-finance.
When you’re ready to sell your home, request your complimentary home value report!
And if you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!
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