PROPERTY VALUATION METHODS
The Real Estate world relies on two basic approaches to property valuations: CMA and Appraisal.
C M A: CMA stands for Comparative Market Analysis. It is the best method available to home sellers to learn their home's current value so they can select the best sale price. CMA is typically done by a real estate broker to determine a fair market value for your home. It is the process of determining market value by comparing a property with comparable or similar properties that are currently on the market, pending, sold and expired. The properties that are used as comparisons should ideally be of similar location, condition, size and age. The comparables should also be of similar quality. And the best part is that we do it at no charge for the Seller! If you don't get a CMA before you list your home you might try to sell it for the wrong price. Setting the price too low means you'll get less money for your home; setting it too high means it might not sell at all. A good real estate agent will want to complete a CMA on your property before helping you sell it. Usually, a broker will want to see your property before preparing a CMA on it. The property does not have to be in perfect condition. However, its condition does affect price, so if you plan to do work on the property, let the agent know. At this point the agent may recommend improvements to increase your home's value.
The broker will research information about comparable properties in the building and or in the area, including:
· Properties that have sold and closed within the last 12 months
· Active listings - properties currently for sale
· Pending sales - listings that have sold but not yet closed
· Expired listings - properties that did not sell during the listing period
Then, the broker suggests a probable selling price. Usually, CMA would recommend a price range rather than a set price.
CMA is prepared by a real estate broker and CMA is not an appraisal (a real estate appraisal is a comprehensive evaluation performed by an independent professional appraiser). However, from Seller's point of view, CMA is the most useful tool in pricing a property.
A P P R A I S A L: The majority of prospective property purchasers seek financing from a bank or financial institution. These financial entities require an appraisal in order to certify the value of the property and to ensure that the funds being lent cover a certain percentage of the real value of the property as assessed by an impartial third party (and not a percentage of some, possibly, exaggerated figure set by an aggressive seller or broker).
An appraisal analyzes and documents the condition and attributes of a property, and analyzes its value through a process that usually involves comparing the property with sales of comparative properties in the market area.
Appraisers arrive at a home value by issuing deductions and credits for features the home either has or doesn't have compared to similar properties in the market area.
Ask us for a FREE Estimate of The Value of Your Apartment to Ensure You Get the Most Value for Your Manhattan Home.
The Real Estate world relies on two basic approaches to property valuations: CMA and Appraisal.
C M A: CMA stands for Comparative Market Analysis. It is the best method available to home sellers to learn their home's current value so they can select the best sale price. CMA is typically done by a real estate broker to determine a fair market value for your home. It is the process of determining market value by comparing a property with comparable or similar properties that are currently on the market, pending, sold and expired. The properties that are used as comparisons should ideally be of similar location, condition, size and age. The comparables should also be of similar quality. And the best part is that we do it at no charge for the Seller! If you don't get a CMA before you list your home you might try to sell it for the wrong price. Setting the price too low means you'll get less money for your home; setting it too high means it might not sell at all. A good real estate agent will want to complete a CMA on your property before helping you sell it. Usually, a broker will want to see your property before preparing a CMA on it. The property does not have to be in perfect condition. However, its condition does affect price, so if you plan to do work on the property, let the agent know. At this point the agent may recommend improvements to increase your home's value.
The broker will research information about comparable properties in the building and or in the area, including:
· Properties that have sold and closed within the last 12 months
· Active listings - properties currently for sale
· Pending sales - listings that have sold but not yet closed
· Expired listings - properties that did not sell during the listing period
Then, the broker suggests a probable selling price. Usually, CMA would recommend a price range rather than a set price.
CMA is prepared by a real estate broker and CMA is not an appraisal (a real estate appraisal is a comprehensive evaluation performed by an independent professional appraiser). However, from Seller's point of view, CMA is the most useful tool in pricing a property.
A P P R A I S A L: The majority of prospective property purchasers seek financing from a bank or financial institution. These financial entities require an appraisal in order to certify the value of the property and to ensure that the funds being lent cover a certain percentage of the real value of the property as assessed by an impartial third party (and not a percentage of some, possibly, exaggerated figure set by an aggressive seller or broker).
An appraisal analyzes and documents the condition and attributes of a property, and analyzes its value through a process that usually involves comparing the property with sales of comparative properties in the market area.
Appraisers arrive at a home value by issuing deductions and credits for features the home either has or doesn't have compared to similar properties in the market area.
Ask us for a FREE Estimate of The Value of Your Apartment to Ensure You Get the Most Value for Your Manhattan Home.