MARKET ANALYSIS

Comparative Market Analysis

A Comparative Market Analysis, or CMA, is prepared by a real estate professional to estimate a home’s current market value. It looks at recent comparable sales, active and pending listings, neighborhood trends, and the specific characteristics of the property, including location, size, condition, upgrades, views, lot characteristics, and overall buyer appeal.

Carol uses this information to compare your home with similar properties and develop a realistic range of value based on current market conditions. For homeowners considering a sale, a CMA is an important first step in determining an effective pricing and marketing strategy.

APPRAISALS

An Independent Opinion of Value

An appraisal is a formal opinion of value prepared by a licensed or certified appraiser. Appraisals are commonly required by lenders when a buyer is obtaining financing or when a homeowner is refinancing a property.

The appraiser independently evaluates the property and reviews comparable sales, location, condition, size, improvements, and other relevant market factors before arriving at an opinion of value. Unlike a Comparative Market Analysis, an appraisal is performed by an independent appraiser and is generally used for lending or other formal valuation purposes.

REFINANCING

Understanding your home’s current value can be helpful when considering a refinance. Lenders use property value as part of determining available equity and loan terms, although requirements vary by lender and loan program.

HOME IMPROVEMENTS

Before investing in major improvements, it can be helpful to understand how your home compares with others in the neighborhood. A current valuation can provide perspective on which improvements may add market appeal and help you avoid over-improving for the area.

QUALIFYING FOR CREDIT

If you are considering a home equity loan or line of credit, your property’s value is one factor a lender may use to determine how much equity is available. Lending requirements vary, so a professional valuation can provide useful information before you speak with a lender.

PLANNING

Knowing the approximate value of your home can also be useful for long-term financial and real estate planning. Whether you are considering a future move, evaluating your equity, or simply keeping track of one of your largest assets, an updated valuation can help you make more informed decisions.