The bottom line of the CMA is an estimate range of market value based on the most comparable recent sales in the market. This is not an appraisal so it is not a single number. We pick the best comparable sales we can find (recent, nearby, similar size and features) yet comparables are never a perfect match. And it is impossible to quantify all the factors that influence a Buyer's offer and the Seller's willingness to accept an offer. That is why we base the estimate on more than one comparable. So, think of it as a range.
I will be glad to walk you through the process if you wish. You will see on the form that we try to spell out every adjustment to the comparables. We want the process to be totally clear so you see exactly what contributes to the bottom line estimate. We adjust for the size (SqFt heated above grade, heated below grade, unheated other space); rooms & living areas (bedrooms, bathrooms, garage, carport, deck, patio); key features like type of siding & ceiling height; age of the home and appreciation since each comparable sold. We base the appreciation estimate on the general appreciation rate in the surrounding neighborhoods.
We report the tax valuation but caution that the tax value is generally not a reliable measure for the market value. Even if the tax appraisal was perfect on day one, a lot can change in the eight years between assessments. At the bottom of our analysis we show two price per SqFt measures, one based on just the home itself and one that includes the land. This allows you to better compare homes on different sized lots.
