Uncategorized April 17, 2023

What’s the difference between the Realtor’s suggested price & the Appraisal report?

 

A realtor determines the value of a property by conducting a comparative market analysis (CMA). A CMA involves analyzing recent sales of similar properties in the same neighborhood & or surrounding areas to determine a fair market value for the property in question. The realtor will consider factors such as the property’s location, size, condition, and features, as well as current market conditions and demand for similar properties.

An appraisal, on the other hand, is a formal valuation of a property conducted by a licensed appraiser. The appraiser will consider many of the same factors as a realtor when determining the value of the property, but will use a more rigorous and standardized process to arrive at an opinion of value. This may include a physical inspection of the property, a review of public records, and analysis of comparable sales data.

One key difference between a realtor’s CMA and an appraisal is that the appraisal is typically required by a lender when a property is being financed. This is because the lender wants to ensure that the property is worth the amount of the loan they are providing. In contrast, a realtor’s CMA is typically used to help a seller determine an appropriate listing price for their property, or to help a buyer make an informed offer.