Comparative MARKET ANALYSIS

Market Data Meets Contextual Nuance

As your realtor, I can put together a Comparative Market Analysis (CMA), which evaluates similar homes that have sold recently in the area (whether that be neighborhood, zip, radius, etc). I look at comparable sales and triangulate various data points from each comparable property (or "comp") to derive the likely value of yours. Factors include material facts like size, bedroom and bathroom count, to more subtle nuances like market conditions and hyper-specific location considerations. 

APPRAISAL

A Designated Professional Opinion

An appraisal is an unbiased valuation of a home based on a professional appraiser's opinion, and are generally used by companies for home purchases and refinances. An appraiser conducts a complete visual inspection of the interior and exterior of the property as well as taking into consideration recent sales of similar properties and market trends. The appraiser then compiles a detailed report, including an exterior building sketch, a street map showing the home and any comparable sales, photos of the home and street, an explanation of how the square footage was calculated, and any other relevant information.

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 IMPROVEMENT

If you’re doing home improvement projects to increase 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 actually 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 that 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) might be a good option. To qualify, you need to 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.

FUTURE PLANNING

While not a necessity, simply knowing the value of your home is excellent information to have. It will help you plan for the future and deal with unforeseen circumstances if you end up 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.