Category — Appraisals

Agreeing on value is the basis of home-buying negotiations. Home values are subjective. You can start by looking at comparable properties and negotiate on those values, but the actual value of amenities varies depending on person. Know where the question of opinions of value versus facts comes into play in negotiations. 

Many of the home valuation tools that you find on the Web don’t offer you the objective input that you need to truly determine an accurate home valuation. These tools are often referral sources for particular real estate agents, and only include a small sampling of properties specific to the real estate agent or company. To truly get an accurate home valuation, you need an objective sampling of comparable properties.  

In addition to homes that have already been sold, a good CMA gives you information about other properties that are currently for sale. Even if properties don’t meet your criteria, they may be valid considerations for a CMA so that you can objectively evaluate whether the home you’re looking at is worth the asking price. Make sure you understand what the “Currently for Sale” section can tell you.  

One thing you’ll probably see in your home-buying process is a comparable market analysis. When you’re nearing the offer stages, your real estate agent should be able to provide you a CMA to help you make your decision. What’s a comparable market analysis, and what does it tell you?  

The appraisal process is a key step in finding out whether or not you’ll be approved for a home loan. The appraisal tells lenders all about the state of the home, how it compares to other homes in the neighborhood and similar neighborhoods, and how much it’s worth. This is one of the key documents that lenders use when deciding whether or not to offer a loan, so you need to know what to look for on an appraisal – and what can go wrong.