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Estimating the Market Value of Your Home

Most real estate professionals will offer an estimated market value of your home or property when creating a listing contract. After all, you need to set a listing price. But it’s important to understand this is NOT a professional appraisal of your home. Only licensed real estate appraisers are permitted to professionally appraise your home.

What is a Comparative Market Analysis?

A Comparative Market Analysis (CMA) is a method real estate professionals use to estimate the value of residential properties, which helps sellers set a listing price for their property. CMAs examine the prices at which similar properties in the same area have recently sold.

The report you are given must include a statement indicating:

  • the purpose of the report
  • that a real estate appraiser with a license from the Real Estate Council of Alberta (RECA) did NOT prepare this report
  • that it is NOT a real estate appraisal report
  • that no one should refer to or rely on the report as an appraisal report
  • that the report does not comply with RECA appraisal standards
  • that the report must not be used for financing, civil proceedings, income tax purposes, or financial reporting purposes

CMAs must only provide a range of value for the property, not an exact value. As a seller, the purpose of a comparative market analysis is to help you make a decision on how to price your property for sale or rent. You would then use the CMA’s range of value to set a listing price for your property. You cannot use the CMA to obtain mortgage financing for a property.

 

If you would like a FREE market evaluation of your home, please contact our office!!

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The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
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