A home evaluation— also known as a CMA or “Comparative Market Analysis”; is a report prepared by a Realtor® providing data comparing your property to similar properties in the marketplace.
The first thing an Realtor® will need to do to provide you with a home evaluation is to gather a little information on your property. Generally, the Realtor® will ask you questions about the square footage of your home, if you’ve done any renovations, is your basement finished, and so on. If you plan to make changes before selling, inform the Realtor® at this time.
The next step is for the Realtor® to obtain data on comparable properties. This data is usually available through the MLS® (Multiple Listing Service) System, but a qualified Realtor® will also know of properties that are on the market or have sold without being part of the MLS® System. This will give the Realtor® an idea how much your property is worth in the current market. Please note that the home evaluation is not an appraisal. Appraisals are typically performed for financing, and can represent quite an expense. Appraisals must be performed by a licensed appraiser.
The home evaluation process takes place before your home is listed for sale and is a good assessment of what your house could potentially sell for.