There are two official methods used to determine a home’s value: an appraisal and a comparative market analysis (CMA). An appraisal is different from a CMA. An appraisal is a method designed to create a justifiable valuation based on past sales with some weight to values in the near future.
Appraisers review numerous factors and base information on recent sales of similar properties, their location, square footage, construction quality, excess land, views, water frontage and amenities such as garages, number of baths, etc. A lender requires an appraisal to determine the loan-to-value.
A comparative market analysis is an informal estimate of market value performed by a REALTOR® for the purpose of introducing your property for sale to the market. It’s intended to be a starting price that can be adjusted depending on interest by the public. It is based on sales in the past 90 days and active listings; that will compete with your property, that are similar in size, style and location.
Some home owners may do their own price comparisons by researching similar homes in their neighbourhood. However, this may not reveal the true value of your home, especially if there are special features. For example, a 50-year roof is worth more than a 25-year roof; a yard filled with fruit trees will appeal to a cook; a garage with a mechanic’s bench will appeal to the auto enthusiast. Homes are priced based on the value to the best buyer we can find. Let us show you the true value of your home.
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