In today’s market, Low appraisals can kill a sale. So it behooves a potential buyer to know what a CMA is and the differences between what a Realtor will provide versus what the Lender provides.
So what exactly is the difference between the Comparative Market Analysis (CMA) done by your Realtor and the one done by a lender and why should you care ?
Most Realtors offer a CMA service including Greater Tampa Bay Real Estate. If you check out the tab on our site you will see that we have an area where a potential buyer or a seller can request from us a Free Comparative Market Analysis.When that is done we go back and research the county records for the sales in the neighborhood you are interested in. We look at what has sold as far back as six months to be able to present you with a good estimate. This amounts to an informal estimate of market value based on comparable sales in that area. This gives you a good ball park figure to work with. However, with the current market trends a home that sold for more money six months ago may not provide a good comparative analysis for what the current market will bear. So at this point in time it is even more important to talk with us early so that we can help you get a lenders CMA. Lenders typically will use the appraised value to determine the correct mortgage amount. You do however need to be aware that some appraisers may not take into account all the upgrades you may have made and may look only at the local market. So how do you ensure against this ? We have provided a few key points to be aware of and where we can assist.
How can we help you to avoid low appraisals ?
- We can assist you in hiring a reputable appraiser before the sale. Then we will ask your buyer’s or lenders appraiser to review your appraisal.
- Retain the option to approve your buyer’s mortgage lender. We will make sure that the buyer doesn’t use a lender with a history of deliberately underestimating property values. We generally know through our experience in the Tampa Bay Area which lenders routinely under value homes and will help you steer clear of them.
- Keep records of repairs and upgrades, including costs. Take “before” and “after” photographs. Create an organized journal with a listing of expenses and include pictures to show to the appraiser during the appraisal appointment. We can then assist you with stage your home for the appraiser like you do for buyers.
- We can help secure your property comparable’s to make sure the appraiser uses complete information. We will call agents with homes in escrow and get the current sales prices. We will then make a list of these properties with the agent’s phone numbers and give it to the appraiser.
What can we do when your selling appraisal comes in too low ?
- We will ask for another appraisal.
- We will protest the appraisal with documentation of your upgraded expenses.
- We will work to have the buyers make a larger down payment.