CMA

Comparative Market Analysis

A Comparative Market Analysis (CMA) is a technique used by real estate agents to value a home by evaluating similar homes that have recently sold in the same area. I provide this service for free for clients, friends, family, neighbors, and members of the communities I serve. In most cases, a CMA is more than enough information for your own planning purposes - for example, to determine how much equity you have in your home, or to understand what it might sell for if you decide it's time for a move.

FORMAL APPRAISAL

Formal Appraisal

An appraisal is an official valuation of a home based on an appraiser's calculations and judgement. They are usually what mortgage companies use for home purchases, refinances, and home equity loans / lines of credit. A lender usually orders a home appraisal and the cost of the appraisal, sometimes up to $500, is paid by the homeowner. 

While appraisals are common in lending scenarios, they are often not the best choice when contemplating a sale. For example, in the case of a divorce or inheritance where you need to know the value of the property in order to make decisions on next steps, a CMA is typically the better choice. This is because an appraisal is a formal report that will likely need to be included in the disclosures when you market the home for sale, potentially setting a ceiling for how much you can sell it for.

Please reach out and I'll happily advise you on whether a formal appraisal or a comparative market analysis is a better fit for your unique situation.