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CMA vs Appraisal

What's the Difference Between a CMA and an Appraisal?

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What is a CMA?

 

How do you find out the value of your home? There are two ways - a comparative market analysis, or CMA, and a professional appraisal.

The CMA is used to determine current market value so that you can choose the listing price where your home will sell quickly and for the highest amount possible.

Your real estate professional gets the information for the CMA from the multiple listing service, or MLS, where brokers and their agents pool information on listed properties for sale. The MLS also contains sold data, historical trends and property tax roll data.

The CMA includes recently sold homes and homes for sale in your immediate neighborhood that are most similar to your home in appearance, features, and general price range. Establishing a home's fair market value is equally important to buyers and their lenders. When your buyer applies for a loan, the bank will order an appraisal.

Where the bank appraisal differs from a CMA is that it is performed by a licensed appraiser - not a real estate agent. Even though the appraiser is hired by the bank, the appraiser has no vested interest in the transaction.

The appraisal is designed to protect the bank, so that it doesn't loan too much money for a single property. The appraiser visits your home and compares it to other similar homes using square footage, finishes, age, condition, location, and more.

The data is compared to property tax records and recent solds as well as sales trends to determine the arc of prices up or down. Appraisers also use information from the local MLS.

If an appraisal comes in lower than the asking price of the home, the bank will not make the loan, and the seller will likely reduce the price for the buyer.

One thing is certain, no home will sell for more than it's worth in any market. If you price your home based on the information suggested by the CMA, chances are good that the buyer's appraisal will support the sales price.

If you price your home above comparables, it's a sure way to insure your home won't sell.

© 2017 IRES Information source: Information and Real Estate Services, LLC. Provided for limited non-commercial use only under IRES Rules. @copy; Copyright IRES. All rights reserved. Information deemed to be reliable but not guaranteed. The data relating to real estate for sale on this website comes from IRES and the Broker Reciprocity Program.sm. Real estate listings held by brokerage firms other than MB/West Realty are marked with the BR logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. listing information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information last updated on 2017-06-27 22:12:25.

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Bev West
West Realty/Metro Brokers
3835 10th Street, #200C
Greeley, CO 80634
Cell: 970-631-7111
Office: 970-351-0405
bev@bevwestingreeley.com


Bev West   |   970-631-7111   |   bev@bevwestingreeley.com
West Realty   |   3835 10th Street, #200C   |   Greeley, CO 80634
Copyright © 2015. Bev West, All Rights Reserved