That's the question, isn't it. What actually is my home worth? Growing up, my father always said:"
"Something is worth what someone will pay for it."
Right... but that's not especially helpful in this situation. So how do we find out what your home is worth? I like to give my clients options, so here you are.
Different Ways to Determine a Home's Value
As you might expect not all methods are the same. But I'm guessing you already knew that.
I'm going to outline the different ways some people might want to use in order to determine the value of your Louisville home. I'll put them in order, starting with the most worthless.
- Zestimate: I won't link directly to the Zillow website because they often cause consumers more harm than good but take it from me, their Zestimate is utter rubbish. They grab all the data that's on the Internet that may, or may not, relate to your home and feed it to a computer who promptly spits out a number. Values can be too low or too high and off by as much as $100,000!
- Property Valuation Administrator (PVA): This is our government putting a value of your home, with the goal of collecting as much property tax as possible.
- Bad or Lazy Real Estate Agent: Agents can be great, terrible or somewhere in between. There are a bunch of onlilne tools created to help a real estate agent find the value of a home as quick as you can enter the address and hit the "Submit" button. Of course, we're still missing the mark, by a longshot.
- Bad Appraiser: Before becoming a Realtor, I thought when an appraiser gave you their report, that was it. Your home was worth the amount specified in the report. Since then I've learned that appraisers are people too and some of them aren't very good at their job. At least they're visiting the property and using the manually adjusted approach to a CMA but because they are assigned by an outside organization, they may be from a completely different city, which doesn't give them the best feel for Louisville's neighborhoods.
- Good Real Estate Agent or Appraiser: Ok, now we're talking! We've got a diligent, trustworthy agent or a good appraiser who will manually adjust more than just three items to produce a quality CMA. Here's where we come to the last crucial ingredient. Knowledge. There's an art to arriving at a value to adjust a home that has a 3-car garage compared to a 2-car garage in Lake Forest. This expertise is key to arriving at the best possible number.
I Think I Need a Louisville CMA. What Is a CMA Exactly?
Actually, a CMA stands for many things. It can refer to:
- Current Market Analysis, or
- Comparative Market Analysis, or even a
- Competitive Market Analysis.
Confusing right? Not really. They're all basically the same thing. It's the process by which a real estate professional determines the accurate value of a given piece of property.
The best approach to creating a CMA that's truly worth something is called the manual adjusted methodology. It's the most accurate but also the most time consuming.
If you would like me to create one for your property, please contact me. Let me know when I can come visit your home. I'll ask you a few questions, take some measurements and then get out of your hair. Depending on my schedule, I can complete a thorough CMA in just a 2 days.
Once complete, we'll schedule a meeting where I can communicate my findings to you. You can ask any question you like. Best of all, there are no strings attached. Sound like a great deal?