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Answers (17)
- Rich Fine, "Rich Fine"
- Contributions:37
It's at a point where we can barely state the size of the home, and we can only do that if we have other paperwork to back it up. Aside from the answer where the agent may be a licensed appraiser, I don't see a BPO or CMA used for anything except an approximation of market value. Whether there is a retail buyer at that market price, and if an actual appraisal will be close...that's another story.
- Brent Mayes, "Brent Mayes"
- Contributions:16
absolutely not.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
No, therefore the requirement that this be added to them;
"This market analysis may not be used for the purposes of obtaining financing in a federally-related transaction"
"This market analysis may not be used for the purposes of obtaining financing in a federally-related transaction"
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
- Shawn Ryan Rosa, "sryan1980"
- Contributions:493
Only licensed appraisers can conduct appraisals. That is why realtors coined the phrase "CMA." However, a local real estate expert always knows home values better than an appraiser. Appraisers routinely call realtors for info and advice when they are conducting their appraisals.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
No
- Caveat Emptor
- Contributions:500
" is a snapshot of the market."
a very apt metaphor as oftentimes a photograph can be taken from 3 different angles and show completely different stories. some zoom in too far, others stand too far back, while others are just plain weird. It depends entirely on the photographer who took the photo.
Likewise a CMA can be a beautiful panorama, an elegantly framed portrait or something spit out by a photo-booth when you deposit a few quarters. when comparing "snapshots" you'll need to look at the "whole picture" or you may end up with buyer's remorse.
So, no. A CMA is not an appraisal, because there is no "standard" for CMAs. They are a marketing tool and nothing more.
a very apt metaphor as oftentimes a photograph can be taken from 3 different angles and show completely different stories. some zoom in too far, others stand too far back, while others are just plain weird. It depends entirely on the photographer who took the photo.
Likewise a CMA can be a beautiful panorama, an elegantly framed portrait or something spit out by a photo-booth when you deposit a few quarters. when comparing "snapshots" you'll need to look at the "whole picture" or you may end up with buyer's remorse.
So, no. A CMA is not an appraisal, because there is no "standard" for CMAs. They are a marketing tool and nothing more.
- Adam Borders, "AdamBordersRealtor"
- Contributions:14
A Comparative Market Analysis is not a substitute for an appraisal. Is is a snapshot of the market. There are many more factors that are used in the appraisal.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Vince......you always give such great answers!
- Steven Pacchiano, "NY Broker"
- Contributions:313
ordering a bank apprasal and spending 500-1000 for them to tell you what your home is worth, not only is a waste of money but its usually very wrong. The bank who you hire to do an app, is looking to collect their money, NOT give you a real price value on your home.
THE real apprasal will come when your have a buyer who makes an offer on your home, and THEIR bank shows up to do an apprasal, to make sure that what the buyer is paying is worth it.
BUT, to get the BEST IDEA, of what your home is worth, call a local realtor have them bring comps from your area. Your home is only worth what someone is willing to pay for it AND what all the other homes like yours in the area are selling for.
THE real apprasal will come when your have a buyer who makes an offer on your home, and THEIR bank shows up to do an apprasal, to make sure that what the buyer is paying is worth it.
BUT, to get the BEST IDEA, of what your home is worth, call a local realtor have them bring comps from your area. Your home is only worth what someone is willing to pay for it AND what all the other homes like yours in the area are selling for.
- Vince Curtis, "SoCal Appraiser"
- Contributions:4699
YES, but ONLY when the CMA is done by a Realtor with a valid appraisers license - as myself. (This would be a good real estate trivia question, someone come up with a good trivia app for Iphone, would ya !!)
More trivia here - In fact, if an appraiser gives you a verbal value, or writies it down on a napkin, UNLIKE Realtors, its considered a valid appraisal and appraisers can and have been sued for the validity of these non-formal valuations. Realtors, on the other hand, can not be held to that level of value expertise.
So thats why appraisers never give you a straight answer when you ask them about your listings 'value' ...
More trivia here - In fact, if an appraiser gives you a verbal value, or writies it down on a napkin, UNLIKE Realtors, its considered a valid appraisal and appraisers can and have been sued for the validity of these non-formal valuations. Realtors, on the other hand, can not be held to that level of value expertise.
So thats why appraisers never give you a straight answer when you ask them about your listings 'value' ...
- Derek Zasaretti, "Derek_Zasaretti"
- Contributions:343
No. It's only a vague comparison of properties in the area.
- hpvanc
- Contributions:2579
No agents do not have the education or license to provide legal appraisals. A CMA may legally be prepared for purely marketing purposes with little or no basis in reality, so it should have little or no standing, and for some reason most agents prefer it that way.
- Tug of War
- Contributions:1969
NO
Define Blah Blah should be Blah Blah
NO!
- wordsmth
- Contributions:361
Define "valid."
Legally binding? No.
Likely to be accepted as-is by a lender? No.
A professionally-prepared document that should provide a reasonable estimate of the value of a property? Yes.
Legally binding? No.
Likely to be accepted as-is by a lender? No.
A professionally-prepared document that should provide a reasonable estimate of the value of a property? Yes.
- MarKus McClellan, "MarKusGroup"
- Contributions:106
A CMA is a useful tool, but it's not a legal document.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
No.
Is a CMA done by a Real Estate Agent a valid Appraisal
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- 5.0/5.0
- (1 review)
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