Appraisals V. CMA (Competitive Market Analysis)

Appraisals:

Many individuals find themselves toying with the notion of ordering an appraisal prior to listing their estate for sale. Seller be warned! Typically an appraisal can run anywhere from $375-$475 and can only be used for guidance. In this  day in age your buyers lender whether or not it is a private lender or bank will order their own appraisal to avoid any notion/chance of fraud. Below is a few examples of when I would urge a seller to order an appraisal prior to listing.
  1. Not enough local comps to support a strong a market analysis.
  2. Ranch land: Considering in many cases there are a lack of comparable properties.
  3. Properties exceeding $700k: In many cases as you get into luxury estates due to the amount of
      customized upgrades it can be difficult to get a realistic property analysis. I've seen appraisals
      range AVG.  $50k-$70k in value on the same property.

Zestimate & Zillow.com

I have yet to see a zestimate on Zillow.com that I exactly in line with someone's current market value. They tend to be to high or below market value. Why? Zestimates for the most part do not account for sales price v. list price, upgrades, standard appraisal adjustment (Example: +$10k for pool, + $6k for view of pond, etc,) The only time I've seen a zestimate account for these difference is if the listing agent update the sales price information online even then the figures can be limited. In no way shape or form would I even bother reviewing those numbers.

CMA (Competitive, Market, Analysis)

A well seasoned real estate consultant can easily pull comps for the past 6+months and give you a clear indication of your property value. Typically I can put someone within $5k of their market value by using a few of the following criteria:
  Comparable properties sold
1.Sales within the past 6 months
2.Within the subdivision and or .5-.7 mile radius of subject property.
3. +/- 300-500sqft (Keep in mind this really depends on the subject properties sqft.)
4. +/- 5years in age. (If the property has been flipped/remodeled, etc. this is not an accurate depiction

Note: These are only some of my basic properties in figuring out your market value. If you would like a FREE market evaluation feel free to contact me today.