MARKET ANALYSIS

Comparative Market Analysis

A Comparative Market Analysis (CMA) values a home by comparing it to recently sold, similar homes in the same area. Agents typically use three comparable sales, adjusting for differences to estimate what each would cost if identical to the home being valued in the current market.

APPRAISALS

Based on a Professional’s Opinion

An appraisal is an unbiased home valuation done by a professional, often required by mortgage companies for purchases and refinances. Ordered by lenders and costing up to $500 (paid by the homeowner), it includes a thorough inspection of the home, analysis of recent comparable sales, and market trends. The appraiser's detailed report features an exterior sketch, street map, photos, square footage calculation, and other relevant information.

REFINANCING

Lenders base loans on your property's value, typically allowing you to borrow 75% to 96.5% of it. Knowing your home's worth helps calculate your equity, and more equity means better refinance terms.

HOME IMPROVEMENTS

When improving your home to increase resale value, ensure you don't overprice it for your neighborhood. A valuation helps you gauge how your home compares locally, guiding your improvement choices wisely.

QUALIFYING FOR CREDIT

To borrow cash against your home with a Home Equity Line of Credit (HELOC), you need sufficient equity, typically at least 20%. A home valuation determines your eligibility and helps lenders decide on your loan application.

PLANNING

A home valuation determines your eligibility for a HELOC by assessing your home's equity, crucial for lenders in deciding on your loan.