If you are thinking about selling your home soon, make sure that you do not put it on the market without a full market value appraisal by a licensed and/or certified real estate appraiser.

Today, many home sellers list their home for sale with a real estate brokerage company and allow the real estate agent to provide them with a Competitive Market Analysis (CMA). The CMA is a list of properties selected by the real estate agent which are similar in age, utility and design to the subject property and that should reflect a similar fair market value. A great deal depends on the experience and the expertise of the real estate agent administering the CMA so that the subject property is properly priced so that it may sell quickly in the open market place.

If I were thinking about selling my most valued asset in the world, I think that I would invest the money in a full market value real estate appraisal report by a certified real estate appraiser. The real estate appraisal is a highly comprehensive document that describes the subject property, the subject property’s neighborhood and at least three comparable sales that are similar to the subject property in age, utility and design. In addition, the Appraiser applies and utilizes the three approaches to value; the Market Approach, the Cost Approach and the Income Approach to arrive at the final caluculation of fair market value for the subject property. Why would anyone list their home for sale and wonder if the home is properly priced? You may want to save the $350.00 for the real estate appraisal report and in turn lose thousands of dollars because you never knew the true current value of your home. I think we call it penny wise and dollar foolish!

Another advantage of paying for a full market value real estate appraisal is that you may want to give it to your buyer so that he/she/they may use it when attempting to secure their new mortgage loan. Many mortgage lenders will accept the seller’s real estate appraisal report as long as the appraisal has been performed within six months of the proposed sale. Your have just saved the buyer $350.00. Now, both you and the buyer have a good feeling about thge fair market value of the subject property and have been reassured that you have both been involved in Win-Win transaction.

In this brief senerio, it is possible for both the seller and the buyer to leave the closing table with a positive metal attitude and feel like a Winner.

Tags: Appraisal, appraiser, cma, competative market analysis, Real Estate

This entry was posted on Tuesday, August 19th, 2008 at 8:17 pm and is filed under Appraisal, CE, Dr. Martin, Investment, Mortgage Finance, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.