3 Big Differences Between A CMA & An Appraisal
If you want to sell your home, there are two different ways that you can learn about the value of your home. One is through a real estate appraisal report that is created by a real estate broker. The second is by a comparative market analysis (CMA) which is created by a licensed real estate appraiser.
A Real Estate Broker & Real Estate Appraiser Have Different Training
A real estate broker and a real estate appraiser are two different positions within the real estate world. At the most basic level of the real estate world is a real estate agent who has to meet all state requirements and has to pass a license exam.
At the next level is a real estate broker. A real estate broker has taken further advanced training. This advanced training is designed to provide additional education in regard to ethics, insurance, taxes and contracts. All of these materials are covered in a more in-depth process.
The next level is a real estate appraiser. A real estate appraiser is an individual who has taken additional classes and coursework that helps them learn about specific appraisal techniques and how the appraisal market works. They have a very focused training on the appraisal realm.
Lenders Like To See CMAs
Lenders like to see CMAs. Bank lenders like to see a CMA because they are created by an appraisal specialist. Banks often uses CMAs to determine the value of your home when you want to resell or refinance your home. That is not the only use of a CMA, but it is the appraisal method that most banks prefer to use.
CMA Use Recent Sales Data
CMA is not just about your home and how it is made and structured. It is about the general real estate market as well. With a CMA, the real estate appraisal will look at recent sales data in your area. They will look at the value of properties that have sold in your area over the past few months. They will look at properties that are currently for sale to see the quality of properties that are for sale in the area and what prices they are listed at. They will also look at what is not selling and determine if those properties are sitting because of quality issues, pricing issues, or an oversaturated market.
More than a real estate appraisal report, a CMA really takes into account the overall real estate market in the area where you live when determining the value of your home and what you should sell your home for. For more information, you can contact companies like Luxor Financial Group.
Talk to your real estate agent and your bank to find out if a CMA or a real estate appraisal report, or both, are best for your particular situation.