Your Mortgage

Your Mortgage - Questions and Answers
'Appraisals, CMAs, and Market Value'

A home ultimately is worth what someone will pay for it. Everything else is an estimate of value.

To estimate a property's value, most people turn to either an appraisal or a comparative market analysis (CMA).

An appraisal is a certified appraiser's estimate of the market value of a home at a given point in time.
1. An appraiser will consider
  1. square footage
  2. construction quality and materials
  3. design functionality
  4. floor plan
  5. neighborhood
  6. availability of transportation
  7. availability of shopping
  8. schools
2. Appraisers also take lot size, topography, view and landscaping into account as well as indices of future value and the overall economic health of the community. or neighborhood.
3. Most residential appraisals cost between $250 and $500.
4. For detailed information on appraisal standards contact: The Appraisal Institute at 875 N. Michigan Ave., Suite 2400, Chicago, IL 60611-1980; (312) 335-4458.
A comparative market analysis (CMA). is a real estate broker's or agent's informal estimate of a home's market value,
1. Based on sales of comparable homes in a neighborhood.
2. Most agents will give you a comparative market analysis for free.
3. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available at local recorder or assessor offices, through private real estate information companies or on the Internet. See: Compare Neighborhood Home Values
4. For detailed information see: Home Sellers - Comparative Market Analysis.