How Much is My Home Worth? (home valuation) Before we discuss the factors which determine your home’s value, we need to clarify a few home valuation terms that are often incorrectly interchanged and misunderstood: the CMA, BPO and the Appraisal. Each of these is an OPINION of market value determined by an individual using a specified methodology.
The Appraisal
- must be done by a licensed or certified Real Estate Appraiser
- most often required by a bank as part of the loan approval process
- typically $300-$400 paid by the buyer
The BPO (broker price opinion)
- the BPO is typically a ‘CMA’ done for a bank (foreclosure/short sale) or a relocation company which is working with a seller
- done by a licensed real estate broker/agent who is hired by the institution
- typically less expensive than an Appraisal
- NOT an Appraisal
The CMA (competitive or comparative market analysis)
- a CMA is typically done for a home seller, for free, as part of the listing presentation
- done by a licensed real estate broker/agent
- NOT an appraisal
Since each of the above is a subjective process, the accuracy of each estimation depends on the evaluator. An Appraisal, BPO or CMA is only as good as the individual doing it. Experience, local market knowledge, and motivation are all components that will impact the quality of the home valuation. Annie and Bob pride themselves in providing potential home sellers with a CMA that is well researched and documented. CMA‘s that are honed by years of experience and familiarity with the local market. If you’re looking for a yes-man who’s going to provide you with an inflated value just to get your business, then Annie and Bob are not the agents for you. If you want an honest evaluation of your home’s value in today’s market, then Annie and Bob will serve you well. In the long run, pricing your home correctly the first time will help you sell for a better price, in a shorter amount of time, as well as at a greater convenience.
Free CMA
Automated Valuation
- more popular sites are Zillow.com eppraisal.com homegain.com.
- approximate values determined from public records (county sales and tax records)
- public records often do not show upgrades to homes, therefore skewing approximations
- automated calculations do not take condition of home into consideration
- large brokerages, such as Edina and REMAX, usually provide neighborhood sales data but do not provide an approximate a value
