What’s the Difference Between a CMA and an Appraisal?
When a Realtor comes to list your home for sale they perform a comparative market analysis, also known as a CMA. A CMA is the method used to determine a property’s list price. It is done by comparing recently sold homes within the neighborhood (and similar areas) and calculating any value variances from one home to another. For example, value is added or subtracted based on the size of a property, if the basement is developed, lot size, garage size (if any), age of home, recent improvements etc. Often a CMA provides a price range such as $420,000 - $430,000. The list price can be on the lower or upper end of the range depending on the amount of competition in the marketplace and the seller’s motivation.
A real estate appraisal is different in that it is done by an Appraiser who is often hired by a bank to determine an exact price for a home, rather than a range as in a CMA. A home appraisal often includes a detailed report and is done for a specific purpose. For example, an appraisal can be done when buying a home to confirm that the purchase price is aligned with the appraised value. This ensures that the lender does not mortgage the property for more than it is worth. It can be done when looking to refinance or renovate the property. It can also be done during a divorce when one spouse is seeking to buy out the other. Appraisals often cost $300-400 whereas the price of a CMA is often free or included in the commission when you list your home to sell.
Realtors and Appraisers are both licensed under the Real Estate Council of Alberta (RECA). If you’re considering selling and want to know the value of your home before determining if a move is the right decision for you then you want to contact a Realtor. If you’re just curious about pricing, you could also contact a Realtor to avoid paying appraisal fees. However, if you need a specific price on your home for refinancing, building, legal or insurance purposes, it’s most likely that an appraisal will be required.
If you’re like many who’ve noticed all of the sold signs in your area and are wondering if now could be a good time to move, feel free to contact us today. We’d be happy to meet with you, get a better understanding of your goals and give you our honest feedback about what options are right for you.
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.919-0004, email firstname.lastname@example.org or visit WeSellLeduc.com