Condition, of course, is a crucial factor in valuation. Location is also a factor. However as a property cannot change its location, upgrades or improvements to a residential property often can enhance its value. A professional appraiser should be a qualified, disinterested specialist in real estate appraisals, with expertise in your region. Most lenders are required to use outside independent real estate appraisers so a bank officer can't demand what price to appraise the property at. The appraiser's job is to determine an estimated value by inspecting the property, reviewing the initial purchase price, and weighing it against recent sales of similar homes with many of the same amenities, square footage, etc. Then they make appropriate adjustments up or down to each of the comparable sales based on those updates or differences to arrive at an adjusted value of each comp. These adjustments allow the appraiser to end up with a final value for the property they are appraising. COMPARATIVE MARKE TIVE MARKET ANALYSIS BY A REAL ES IS BY A REAL ESTATE PROFESSIONAL (CMA) AL (CMA) This type of home valuation is free from real estate professionals (Realtors) and, depending on the knowledge of the Realtor, can be considerably more helpful than automated online offerings. It provides detailed information on each house sold in your area over the last six months to a year, along with the final sale price. It also includes the specifics of all the comparable houses currently for sale as well as currently under contract in your area, including the asking price. These homes are your competition. The real estate professional will also answer any questions and help you price your home realistically. Some CMA's may also contain expired listings which typically means they were probably overpriced and thus did not sell.
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