How a Comparative Market Analysis (CMA) can help you

A Comparative Market Analysis is a method used to determine the value of a property. And although it is typically used to help a seller develop an asking price for their property in can also help them to estimate the equity in their property. This can benefit a seller in several ways: 

1.    Short Sales:  A short sale is when a homeowner may owe more than what a property can sell for. The Lender may consider accepting less than what is owned but will require a Comparative Market Analysis be completed. This is to verify the Seller’s estimated net proceeds and verification that indeed the sale would be short of the funds needed to payoff the existing debt.

2.    Refinancing: Before a homeowner can refinance an existing mortgage there needs to be enough equity in the property (Typically at least 20% on a conventional loan).  A Comparative Market Analysis can help a Mortgage Broker determine if the homeowners could qualify for the new loan.

3.    Loan Modification: Many homeowners have found themselves in situations where they can no longer afford their existing mortgages and cannot sell it for what they owe (as in the short sale situation). By working with their current Lender they may be able to adjust the terms of the existing mortgage, helping the homeowner remain in the home versus facing possible foreclosure.  Providing a current market analysis with the loan modification request can strengthen the homeowners’ chance for modification. 

Knowing what your home is worth and the amount of equity in it, is important information to have whether you’re selling, facing foreclosure or just doing some basic financial planning.

For a free Comparative Market Analysis you can visit my website by clicking here or contact me directly to learn more.