With the widespread availability of the internet, people are looking online for virtually everything these days. This fact extends to the real estate market in Saskatoon, SK, as an overwhelming majority of potential home buyers are turning to the Internet when they embark on their search for the perfect property. The same goes for hopeful sellers attempting to determine the value of their homes by cross-referencing local listings of comparable properties with similar features. This allows sellers to discover the interests of buyers in the area and the amount they are typically willing to spend.
While the Internet can be a useful tool, like doing MLS searches, for both parties in the early stages, buyers are often unsure whether or not sellers are asking a fair price for their homes as the process moves along. To avoid any mistrust on either side, unbiased home appraisals are conducted by experienced and knowledgeable professionals in order to produce an objective property value that should satisfy everyone involved. However, the home appraisal should not be confused with the current market assessment. Although they are quite similar, there are some key differences between the two services.
First and foremost, the home appraisal is decided solely on the basis of the physical attributes of the property that is being sold. Home appraisals generally run between $300 to $400 and are a requirement of the financial institutions that offer mortgages. In case the buyer ends up defaulting on the loan, mortgage companies need to know the actual value of the home before they will lend the necessary funds. To determine the proper market value, home appraisal professionals take into account a variety of factors such as the location of the property, the age and current condition of the home, the square footage, and the number of bedrooms and bathrooms. The value of the home can also be affected by any renovations that have been rendered, as well as changes to the surrounding neighbourhood.
Current Market Assessment
The current market assessment – also known as a CMA – is a service provided free of charge by a local real estate agent as part of the listing process. Although a CMA is based upon much of the same physical criteria as a home appraisal, it includes the property’s location, age, size, current condition, and desirable amenities. This assessment also factors in the existing state of the local housing market to produce an asking price for the seller. Property taxes, seasonality, supply and demand, and the amount that current home buyers are prepared to spend within the seller’s acceptable range all impact the final number as determined by the CMA. This influential data may be compiled from a period of time – varying between one week to one-year prior -, and local areas – which could include a handful of streets or an entire subdivision depending on the market. Unlike the home appraisal, the CMA report is used mainly as a marketing tool for sellers and their representatives to provide additional information about the property.
At REX Saskatoon, our qualified agents will help you with any questions you may have about home appraisals and current market assessments. They are also more than happy to assist you with any matters regarding the buying or selling of real estate in Saskatoon and surrounding area. Don’t hesitate to call today.