Whether you’re looking to sell your home or are simply curious as to the value of your home, you may be wondering what the difference is between a professional appraisal, and a CMA or comparative market analysis. As reputable Flower Mound realtors, we want to help you understand the difference.
When trying to determine how much to list your home for, the comparative market analysis is used to determine current market value which takes into account homes that have been recently sold in your community that are very similar to your own home in terms of features, appearance, and price range. Real estate professionals gather this data from the MLS, or multiple listing service. The MLS is where information on properties which are listed for sale by various brokers and their agents is pooled. The multiple listing service also includes data relevant to recent sales, property tax roll data, and historical trends.
How does an appraisal differ from a CMA? An appraisal is typically performed by a licensed appraiser who works on behalf of the bank, rather than a realtor. An appraiser has no vested interest in the sale of your home, however appraisals are ultimately performed to protect the lending institution or bank from loaning an excess amount of funds for a property. A professional appraiser visits the home being appraised and compares such factors as age, location, condition, square footage, etc. to similar homes. While appraisers do consider information included in the local MLS, they also compare the data they have collected to sales trends, recently sold homes, and property tax records in an effort to determine the curve of home selling prices up and down.
Regardless of the market, your home will not likely sell if priced above what it’s worth; the bank will not approve the loan if your asking price is higher than the appraisal. Use the information your Flower Mound real estate agent provides in the CMA, and chances are you won’t run into any issues when trying to price your home competitively.
For help determining the value of your home, count on the professionals at Team Nelson. Our specialty is making the home buying or selling process as easy as possible for those in the Flower Mound, Frisco, Denton, and surrounding North Texas communities.