When you’re going to put your house on the market, you need to get a good evaluation done, in order to understand how much your property is worth. This way, you can ensure that you aren’t overpricing and losing out on potential buyers, or undervaluing and losing out on potential profit. The two ways to attain property evaluation is through a Comparative Market Analysis (CMA) or an appraisal, and it’s really up to you to decide which one suits you better.

The CMA bases itself on MLS data. So in other words, you’re comparing your house to other houses sold in your area, and ones that are similar to yours. It’s usually prepared by the realtor you are working with, and the number is arrived at through 3 main things – recent sales, current listings and expired listings. The asking price of your home can vary drastically, depending on what sample homes are selected. Since CMA is generally based on market trends, it might also be a little inconsistent, and would reflect where the market is heading, as opposed to where the market is at right now.

When you opt for a certified appraisal, you’re going to get an opinion on the specific property you have on offer. Accommodations will be made for special features, added upgrades to the house, benefits or restrictions which will have a direct effect on your sale.  The appraisal is usually prepared by an expert who has received extensive training and is a specialist in this field. Since the evaluation is based on actual sale prices, it will be the most realistic assessment of the property’s value.

Both CMA and appraisals serve the same purpose – they help you reach a fair market value for your property. Certain people feel it’s better to list higher and settle for less, while others feel it’s better to slightly undervalue and attract more buyers. Depending on how much time you have, and what your requirements for sale are, you can look into either method. It’s also helpful to get expert advice from your agent, who can help you reach the right asking price – as long as you have the right person on your team, you can rest assured that you will get the best price for your home!

Confused about CMA or appraisals? Contact me... Bill Orr at (416) 268 6228