MARKET ANALYSIS

Comparative Market Analysis

A Comparative Market Analysis (CMA) is a pricing tool used by real estate agents to determine a home’s value in today’s market. By evaluating similar properties that have recently sold nearby, a CMA helps identify an accurate and strategic price point. The process involves selecting recently sold homes with comparable features, square footage, condition, and location. From there, agents analyze the differences between each comp and the subject property, adjusting for value where appropriate. The goal is to understand what the home would likely sell for if listed in the current market. While not a formal appraisal, a CMA offers critical insight rooted in local data and real-time trends and empowers clients to make informed, confident decisions.

APPRAISALS

Based on a Professional’s Opinion

An appraisal is an unbiased valuation of a home based on a professional’s opinion. Commonly required by lenders for purchases or refinances, the appraisal includes a visual inspection and a review of comparable sales and local market trends. The appraiser provides a detailed report with property measurements, maps, photos, and a breakdown of how value was determined. The cost, typically up to $500, is paid by the buyer or homeowner and serves as a trusted reference point in the transaction process.

REFINANCING

When refinancing, lenders determine how much you can borrow based on your home’s current value. Most will finance between 75% and 96.5% of that value, depending on the loan program. A current valuation helps calculate your equity—and the more equity you hold, the more favorable your refinance terms may be.

HOME IMPROVEMENTS

A current home valuation offers clarity when considering upgrades aimed at increasing resale value. If your home is already priced near the top of the market for your neighborhood, extensive improvements could limit your return or make the home harder to sell. Understanding how your property compares locally helps guide smarter, market aligned renovation decisions.

QUALIFYING FOR CREDIT

A home valuation plays a key role when applying for a Home Equity Line of Credit (HELOC). Most lenders require at least 20% equity to qualify, and your home’s current value helps determine whether you meet that threshold. The valuation is used by lenders to assess your eligibility and inform their loan decision.

PLANNING

Though it’s not a necessity, simply knowing the value of your home is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your home and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.