Property Assessments, Appraisals & Comparative Market Analysis - Defining the Difference
Generally people are concerned with their property assessment and are often confused and mislead by the many different methods that the banks/insurance institutions, government (MPAC: Municipal Property Assessment Corporation) and Realtors use to decipher their home value. The values you are given vary on methods used but are not necessarily a reflection of the value you would be able to receive for your home from a Real Estate standpoint.
There are very important and distinct differences as far as Property Assessments, Appraisals and Comparative Market Analysis (C.M.A) are concerned.
The government conducts your property assessment. These values are noted on MPAC. There are many different methods used for Property Assessments however the most common one directly affects taxes. A Property Assessment for taxation purposes is the overall value of your home from the exterior dwelling and your land. A rate is then applied to this value to determine your property tax.
Appraisals are conducted by a licensed property appraiser (usually hired by a bank for mortgage purposes for a loan secured by a property value) An appraisal is done to ensure that the bank will not be placed into a negative situation and that the value of your property is able to cover the value of your loan.
Comparative Market Analysis:
Provided by a licensed Realtor comparing properties sold in your area factoring in market conditions/compareable properties and differences between those properties to determine market value.
It is very important to know the distinction between these 3 methods of determining your home's value as they are provided for very different purposes. A home could have an identical property assessment and appraisal however could have a very different C.M.A due to market conditions/locations and features and upgrades within the home.
When listing a home for sale it is important that your Real Estate Agent informs you of the steps that they have taken to determine your pricing through the use of a C.M.A. Over/Under pricing can greatly affect the amount of showings and interest taken from other agents and potential buyers.
If you have any questions in regards to your home value or are looking to have a C.M.A done The Fresh Approach Real Estate Team can help determine your home value and the price point which you should be listed at.
For more information contact any of The Fresh Approach Real Estate Team with Keller Williams Realty Solutions directly for more information.
The Fresh Approach Real Estate Team,
Allana Thompson, Christy D’Oliveira, Kyrsten Feere