MARKET ANALYSIS

Comparative Market Analysis

A Comparative Market Analysis (CMA) is a tool used by real estate agents to value a home. It evaluates similar homes that have recently sold in the same area. Agents find comparable sales and use them to conduct a sales comparison. In most cases, an agent will find three homes that have recently sold and are as similar to and located as close to the home being valued as possible. Each one is then analyzed to pinpoint differences between it and the home being valued. Once these differences are priced out, the price of each comp is adjusted to see what it would cost if it was identical to the home being valued were it to be sold in the current market.

APPRAISALS

Real Estate Appraisal

A real estate appraisal is a formal, unbiased estimate of a property's market value, conducted by a licensed and certified appraiser. It involves an in-depth inspection of the home, analysis of comparable sales (comps), and consideration of factors like condition, location, and economic trends. Appraisals are typically required by lenders during mortgage approvals to ensure the loan amount aligns with the property's worth, protecting both buyer and seller from overpaying. Unlike agent-provided valuations, appraisals are independent and regulated for objectivity. If you're buying or refinancing, we can guide you through the process!

REFINANCING

Lenders base the amount of their loans on the value of your property and usually allow you to borrow a maximum of 75% to 96.5% against your property. Knowing what your home is worth allows lenders to calculate your equity in the home. The more equity you have, the better terms you will receive on your refinance.

HOME IMPROVEMENTS

If you’re doing home improvement projects to increase the resale value, you want to make sure you’re not pricing it out of the market. If your home is already priced on the high-end for your neighborhood, making too many improvements could make it more difficult to sell. When you get a valuation, you can see how your home compares with others in the neighborhood and let this guide your home improvement decisions.

QUALIFYING FOR CREDIT

If you want to borrow cash against your home, getting a Home Equity Line of Credit (HELOC) could be a good option. To qualify, you must have a certain level of equity in your home. Most lenders require at least 20%. Getting a home valuation will help you determine if you qualify and will be used by the lender to make a decision on your loan.

PLANNING

Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.

Selling your home:

Get an accurate price to attract serious buyers quickly and avoid leaving money on the table in a competitive market.

Buying a new property:

Verify the value to negotiate smarter and ensure your mortgage aligns with the home's true potential, preventing overpayment.

Refinancing your mortgage:

Unlock better interest rates or cash out equity by proving your home's increased value since you bought it.

Estate planning or inher...

Provide a clear, up-to-date figure for fair asset distribution among heirs or to inform your will and trust decisions.

Divorce or separation se...

Establish an equitable division of marital assets based on impartial market data, reducing disputes and legal headaches.

Updating insurance cover...

After renovations, additions, or market shifts, recalibrate your policy to avoid under- or over-insuring your biggest investment.

Property tax appeals:

Challenge an inflated assessment with solid comps and data to potentially lower your annual tax bill.

Investment analysis: For rental properties or flips, assess ROI and future appreciation to guide buy, hold, or sell strategies.