What makes difference between a CMA and a Home Appraisal?

When you are selling a house you can get lost in real estate jargon especially if you are a first-timer. A potentially confusing aspect of the real estate transaction process is the difference between a competitive marketing analysis (CMA) and home valuation. Both reports are important in the home selling process and while they are similar there are some very big differences between them.

Competitive Marketing Analysis (CMA) is an agent process 

A competitive marketing analysis is a process that your real estate agent will undertake to get a good idea of the appropriate listing price for your home. CMA is usually a free process offered by your sales agent.

The CMA rates recently sold homes that are similar to yours (often called comps). Real estate agents will gather this information from Multiple Listing Services (MLS) which will essentially contain listing information for sale from other agents. It is important to note that MLS is only available to real estate agents. Selling house is very challenging but listing and selling through SuGanta Realty Services llp is easy task.

When doing a competitive marketing analysis your agent is looking at homes that are similar to you in size and features. The CMA lists information on the assets currently on the market, pending assets, properties sold, and timeframes. The CMA will list the low and average price of your home as well as the estimated average days on the market. Although CMA is not an exact science it can get you very accurate results of a good list price.

Valuation is a bank process 

Once the buyer applies for a loan to purchase your home at that time home appraisal process takes place. After the buyer submits an offer and requests a loan the bank arranges for a licensed appraiser to visit your home.

This is the biggest difference between a CMA and a home assessment:

• A licensed appraiser must be state-certified or state-licensed. 
• Even though the bank initiates the home appraisal process the home appraiser is a neutral third party who has no vested interest in the outcome of the sale. 
• They are meant to report comments and facts about the house to determine fair market value.

The bank only wants to make sure that it does not lend too much money to the house which is why they hire the appraiser. The assessment will include the status of the house recent information about similar listings and information about the neighborhood of the home.

Another major difference between a CMA and an assessment is that you can more or less prepare for an evaluation. You can make sure that everything in your home is working by fixing any obvious flaws and make sure the house is up to date. When you cannot fully predict what the outcome of the assessment will be you will have more control over what the CMA will conclude. CMA and an appraisal are separate procedures but both help you get accurate and up to date information about what your home is worth.

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