A. There are two methods that can help sellers determine price. The first method, a Comparative Market Analysis (CMA), is prepared by a listing/seller’s agent and is used as a means to informally provide a reasonable price range at which a seller may list their home for sale. The CMA typically contains local real estate activity for the last 90-120 days pertaining to active housing inventory (used to show how your home compares to the competition), under contract housing inventory (demonstrates what price range was sufficient for an offer to be tendered), and sold homes (shows the exact price at which the home sold). There is no charge for the CMA and should not be confused with an appraisal, which is the second method. Other data to consider in the CMA is list price versus sold price and days on market.
An appraisal, performed by an appraiser hired by the seller, is also designed to help determine the value of the home. Just as in a CMA, the appraiser makes an on-site visit to the home to see first-hand the home’s condition to make an evaluation against similar homes in the area.