Dear Team Zuhl,
I’m thinking about selling my home, but I’m not sure what it’s worth. How can I find out?
The easiest way of finding out what your home is worth, is to contact your REALTOR and ask for a Comparative Market Analyis (CMA). Many agents, including Team Zuhl, will not charge ANY fee to do a Market Analysis. An appraiser will charge a fee, usually several hundred dollars, but in many cases the appraiser will provide a more accurate number.
A CMA is only an estimate of the value of the property based on similar properties that have sold within the last 12 months in your town. A CMA is an educated estimate of what the home should sell for on the date the analysis was prepared.
When Team Zuhl does a CMA for a homeowner, the CMA is comprised of 3 different analyses: Tax Analysis, the RPR Sellers Report generated by the National Association of REALTORs and a Comp Analysis.
The Tax Analysis looks at the assessed value of the subject and comparable properties. A ratio of assessed value to sale price is generated and averaged for all the properties. That average is then multiplied by the assessed value of the subject home giving an estimate of the current value of the subject property.
The RPR Sellers Report is generated using data gathered by the National Association of REALTORs, by accessing MLS and other data sources. It uses historical, market and geographical data and will pull information based on properties sold within a certain radius of the home regardless of town or zip code. It is similar to the ZEstimate found on Zillow.com, but your REALTOR can adjust several variables to compensate for market activity and condition of the home.
The Comp Analysis is similar to what an appraiser would do, however we only using the data retrieved from the the local MLS and we don’t have access to square footage and other measures. This is a direct comparison between the subject property and sold comps. Feature differences, lot size and condition are the most important factors taken into account.
An appraisal will give you a more accurate evaluation of the current market value, as an appraiser will take attributes of different homes and add or subtract value based upon those attributes. They will also incorporate square footage and price per square foot. Those values are generally not available to REALTORs.
While an appraisal is more accurate, we usually arrive at a value within 2% of the appraised value on properties that we list and sell, using the methods described above. When there are few (2 or less) comparable properties an appraisal will always be the most accurate method of determining value.
So Pat, we hope that helps you with your question.