Many Americans today diligently watch the performance of the stock market – on TV, online and in print – but few take stock of an even weightier investment, maybe their largest investment: their own home. Over 90% of homeowners are unaware of the true market value of their home. Yes, you can go online to Zillow and get a “Zestimate” but even Zillow’s CEO has admitted that Zestimates can be off as much as 40%.
A Comparative Market Analysis (CMA) prepared by a real estate professional can bring you up to speed. A CMA compares your house with similar properties that are active on the market, properties that were on the market and did not sale and properties that have sold. These comparisons should be within the past six months, and if possible within two miles of your property. This is a similar process, while not as in-depth, that an appraiser uses when assessing the value of a property for a bank loan.
This data, combined with the value of upgrades, will give you an accurate picture of your home’s actual worth. Remember, however, that your personalized CMA is a “snap-shot” captured in time. The real estate market constantly fluctuates; therefore, it’s a good idea to obtain one close to the time you’re planning to sale.
When trying to decide whether to buy, sell, or refinance, a CMA is essential in setting price and in choosing advantageous timing. Still, there are numerous other reasons to get a CMA – to obtain a realistic picture of your net worth, to provide adequate replacement insurance, or to leverage your equity.
For your Personalized Comparative Market Analysis call The Byrd Home Team, at RE/MAX Results today: