What is the best way to determine value?
There are several methods and resources used in determining the value of a home. However, the most common is a professional estimate, or what is termed a comparative market analysis (CMA) of a property’s value, based on recent sales of comparable properties, location, square footage and construction quality. CMA’s are performed by either an appraiser or real estate broker. As for terminology, understand that there is a difference between a) Perceived Market Value, b) Listed Value and c) Purchase Price. Perceived Market Value is a theoretical estimate of value that is in the end, determined by the buyer pool which makes up the buying public. Listed Value, is the asking price of a home and Purchase Price is the final, negotiated closing price consummated between a buyer and seller.