We know your New York home is priceless—but if you’re thinking of selling, it’s important to get an up-to-date estimate of your home’s value before listing.
And spoiler alert: Zestimates are not the best source of information!
Trust us… there’s nothing more important than getting the list price correct from the start. Today’s buyers are educated, savvy, and most importantly NOT jumping on homes that are priced too high. If your list price is not a true representation of your home’s value, it may sit on the market for months and lead to price reductions (we don’t want that for you)!
From Zestimates to CMAs to appraisals, here are the top methods for finding your home’s value and the difference between them:
Why Relying Solely on Zestimates Can Be Misleading
While Zillow's Zestimate system offers a quick glimpse into a property's potential value, it falls short in accuracy due to several factors. Limited data, market fluctuations, and occasional errors can significantly impact Zestimates. Acknowledging these limitations, Zillow provides a range of estimated values and an accuracy score to help users navigate its platform.
Why Work with a Real Estate Agent for Accurate Information: Understanding CMAs vs. Appraisals
When it comes to determining the true value of a property, relying on a Zestimate alone is insufficient. Instead, work with a real estate agent who can provide a more accurate assessment through a Comparative Market Analysis (CMA). Real estate teams use CMAs to gauge a property's worth based on recently sold, similar properties in the local area. By leveraging multiple listing service (MLS) data and their expertise in the market, agents can analyze key factors like square footage, location, condition, and amenities to establish realistic listing prices for sellers and guide buyers in making competitive offers. A CMA because it's inclusive of several factors is a better tool for making an informed decision when it comes to either pricing your home or buying one. Here's an example of a CMA.
How a CMA Differs from an Appraisal
While both CMAs and appraisals aim to determine property value, they serve distinct purposes. A CMA is prepared by real estate professionals and assists sellers in setting listing prices or buyers in making informed offers. In contrast, an appraisal, conducted by a state-licensed appraiser, is a formal valuation required by mortgage lenders to ensure the property's value aligns with the loan amount. While buyers may also seek appraisals for loan approval, CMAs offer valuable insights for sellers looking to list their homes competitively.
Why Choose a CMA Prepared by a Real Estate Agent
By working with a real estate agent to obtain a CMA, homeowners gain access to comprehensive insights derived from local market knowledge and recent sales data. Agents meticulously analyze comparable properties, active listings, and pending transactions to provide clients with accurate pricing expectations and strategic guidance throughout the buying or selling process. Reach out to The Geiger Stern Team if you're looking to get an estimate of your home's value in the New York area based on a comparative market analysis.
Zestimates offer a convenient starting point. However, appraisals and CMAs will provide a deeper understanding of your home’s worth and provide a more accurate estimate. Whether you’re a seller beginning your listing journey or a buyer thinking about putting in an offer, The Geiger Stern Team is here to help walk you through it all.
