Comparative Market Analysisand an Appraisal can be a little confusing for Sellers and Buyers. Both have common Elements and both are used to estimate home value.
Usually a Real Estate Professional will do aCMA for a Seller to establish a listing price or for the buyer to decide on good fair offer on a property. CMA's are offer for free to the buyer and seller without obligation. At this point aCMAshould only be used as a reference for deciding an approx market value. A Real estate Professional is not an appraiser and is just trying to establish approx market value.
The agent will create a CMAby utilizing recent sales data and using their knowledge of the local market. The agent will compare your home with homes comparable to yours in your neighborhood or similar neighborhoods nearby.
A comparable home/property is one that is of the same type (single-family, multi-family, condo, villa etc.), is in similar condition inside and out, and has the same or close to the same number of units and land/living area size.
In doing the CMA, the Real Estate agent compares properties that have been recently sold usually within the past 6 months, properties currently on the market, and property which have not sold, and property location such as a corner lot, school district or street traffic.
An appraisal is similar to aCMA but is performed by a licensed Real Estate Appraiser. The Real Estate Appraiser is responsible to provide an unbiased opinion of value of the subject property. An appraiser will use similar methods in coming to a property value as your broker but they must also follow strict licensing and industry guidelines as well as follow the Uniform Standards of Professional Appraisal Practices (USAP).
Appraisers use three methods of determining value; the sales comparison approach (very much like a CMA), the Cost approach (what it would cost to replace the home) and the income approach (used to appraise commercial rental properties).
The appraiser works for a flat fee and has no vested interest in the outcome of the deal. He will be paid regardless of the outcome of the appraisal. An appraisal costs $300 to $400.
A real estate appraisal is most often used by lenders when issuing mortgages for refinancing or buying a home
Is Their A Different Between CMA And Appraisal. the answer is yes.
Atlantic Shores Realty is ready to assist you with all your real estate needs. Our website has information whether you are selling a home on the Treasure Coast or Palm Beaches or buying a home on the Treasure Coast or Palm Beaches.