Is Your Home Worth What You Think?
When determining the value of your home, there are two main ways. Comparative Market AnalysisA (CMA) or an appraisal.
A written justification of the price for a property, primarily based on an analysis of comparable sales of similar homes nearby normally completed by an independant third party through a bank or financial institution. When an appraisal is lower than the agreed upon price of a property and it is a CHMC mortgage, the bank or financial institution may not agree to forward funds to complete a sale, there for real estate negotiations begin again.
A Comparative market analysis or home evaluation is an examination of prices at which similar properties in the same area recently sold, properties currently on the market and properties with offers on them (pending offers). Real estate agents perform a comparative market analysis for their clients to help them determine a list price when selling a home or a price to offer when buying a home.
The true value of a home is the value of what a seller wants, what a buyer is willing to pay and of course what the bank thinks!