Complimentary Comparative Market Analysis (CMA) aka Appraisal

Desktop CMA

A desktop CMA is compiled by using data resources available to Real Estate Agents and by using current photos available online - these photos will mostly likely be from the previous owners listing, therefore not representing any improvements you've done since purchasing the property.

Requesting a desktop CMA can be useful to gauge where your home sits in the current market, however it's not as accurate without a site visit, which must be conducted before any property is to be listed for sale by any licensed real estate agency.

The Site Visit

A site visit takes between 15 - 30 minutes.

Even before the agent arrives at your house, they are checking out the neighbourhood as they drive through it, and more specifically, the front road appeal of your property and gauging your neighbours!

After a brief introduction, the agent will check the condition of the interior and the exterior of the house, also the roof (if visible), and under the house (if there is access). They will check against data resources that the description of the building materials used vs actual is correct and will ask what improvements and upgrades have been made on the property. Additionally, they will ask whether the work has been consented and if there will be supporting documents available. They will look at special features i.e; spa bath, underfloor heating, landscaping, fencing, swimming pool, sheds etc, and also ask about any future planned works that are likely to be done before the home is put on the market.

The Report

The aim of the report is make a comparison between the subject property (your home) and surrounding properties that were sold within the last three months and properties that are on the market. Selecting 2-4 properties that are closest in similarity, aiming to compare "apples with apples" as much as possible, and providing a brief description of the differences between them. Sometimes these properties may extend past three months due to insufficient data however, this too is noted in the report and taken into consideration with how the current market is performing.

Also included in the report are statistics for the suburb or town, a Record of Title, schools in the vicinity and suggestions/observations, with the view to help increase the top dollar a buyer will potentially pay for your home. The agent will arrange a time to come back and present the appraisal to you, otherwise it will be emailed with the view to discuss it further with you if required.

A report is only valid for three months, so if your home is currently listed with another agency and it is getting close to the 90 day mark for the expiry of that listing, please reach out to have a new CMA done and use this as an opportunity to see what Arizto offers before renewing that listing.

As a side note - quite often when doing an appraisal the prospective seller states "the house down the road sold for xx dollars" which unfortunately gives them the sense that their own home is worth as much as that or more. However, what needs to be taken into account is where the market was then and where it sits now. With the realignment of the market heading back down toward a normal market, it is too easy to be stuck on those unprecedented high prices, especially when the CV is also still sitting high.

The below statements are often heard around the real estate office:

"A home is only worth what someone will pay for it"

"The high valuations provided by online resources did not physically inspect the home"

"Those online valuations mean nothing until the cash is in your hand"

Food for thought.