example, for any given property, an insurance appraisal will tend to be lower, and a refinance appraisal will tend to be higher than an appraisal meant to determine present market value. This is the case because insurance companies usually want to pay out as little money as possible, whereas lenders generally want to lend as much money as they can. It is naive to think that appraisers will not take its purpose into account when completing an appraisal.
COMPARATIVE MARKE TIVE MARKET ANALYSIS (CMA) IS (CMA)
A professional appraisal costs several hundred dollars. A reasonable alternative is a Comparative Market Analysis (CMA). As with a formal appraisal, this type of home valuation report provides detailed information on comparable home sales in your area over the last three to six months. However, it is completed by a real estate professional, not an appraiser. When completed by an experienced agent (one who has undergone certified appraisal training), a CMA is just as accurate as a formal appraisal. Besides cost savings, an important advantage of a CMA valuation over a formal appraisal is that real estate agents are free to discuss a CMA report of your home with you, whereas professional appraisers are usually not willing to take the time to discuss an appraisal in detail. Discussing the CMA with your real estate agent is essential to help you understand how to price your home realistically.
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