Real estate pricing is market based, and somewhat subjective in respect to location. CMA reports offer in-depth analysis of a property based on its physical and market values. The CMA is also often the basis to contract with a real estate agent. An agent who has presented a professional statement of value on a property and demonstrates success and knowledge of the specific area is an agent to worth with.
Difference Between a CMA and Lender Appraisal
The CMA report is different from mortgage appraisal of a property, in that it is purely an economic value added statement about an investment. Rather than a precise valuation for initial financing of a property, the CMA estimate is nevertheless proximate to appraised value in result. The CMA is also used in second mortgage consideration.
The CMA will determine if the value of a property is adequate to refinance the current mortgage balance, or to cash out on equity. Comparison of similar properties in a CMA report is one of the best ways to support a request for refinancing on a property toward rehabilitation of an existing structure.
Preparation of the CMA is done using the Multiple Listing System (MLS) combined with several different records and resources. Comparable properties serve as the basis for valuation estimates. Listings included in a CMA: active listings, pending listings, sold listings, and also expired Listings recently on the market. Characteristics compared in CMA assessment include square footage, age, amenities, upgrades and location. CMA reports contain information about the valuation process, compared properties and recommended selling price range.
Using the CMA
The selection of a real estate agent is an incredibly important decision in the selling process. Property agents offering CMA services along with a proven track record in the area are the agents to go with. An agent that can provide CMA along with their own educated opinion on the area is more likely to have in-depth understanding of the market, as well as variables attributing to pricing in an owner’s favor.
Request a CMA as part of a property agent’s services at time of signing on for representation. Listings supported by CMA valuation offer potential buyers a summary about the property value of a home. Property sellers are advised to use CMA in establishing a second opinion on a property value for resale. Some sellers obtain more than three real estate agent CMAs on a single property. The best agents will provide a professional presentation of a property worth.
If you are a current homeowner in Temecula looking to sell your home, the CMA is the first step of the selling process. If you would like to speak with one of our knowledgeable agents about conducting a report or sitting down for a quick chat about the market, please don’t hesitate to contact us.