Estimating the Market Value of Your Home


Most real estate brokerage professionals will offer an estimated market value of your property when creating a listing contract (seller brokerage agreement). After all, you need to set a listing price. But it’s important to understand this is not a professional appraisal of your home. Only individuals licensed as real estate appraisers are permitted to professionally appraise your home.

What is a Comparative Market Analysis?
A Comparative Market Analysis (CMA) is a method of property valuation real estate professionals use to estimate the value of residential properties, which helps sellers set a listing price for their property. CMAs examine the prices at which similar properties in the same area have recently sold.

The report you are given must include a statement indicating:

CMAs must only provide a range of value for the property, not an exact value. As a seller, the purpose of a comparative market analysis is to help you make a decision on how to price your property for sale or rent. You would then use the CMA’s range of value to set a listing price for your property. You cannot use the CMA to obtain mortgage financing for a property.