But first...Why Zestimates Fall Short

While Zillow's Zestimate system may seem convenient, it can be influenced by limited data, market volatility, and occasional errors. The site has acknowledged its algorithm’s limits and instead provides a range of estimated values and an accuracy score.

CMA vs Appraisal

So, if not a Zestimate—where do you start? It’s typical to seek out a CMA if you are a seller considering listing your home on the market. Meanwhile, buyers typically receive home appraisals to solidify their loan amount during the due diligence process.

Let’s break down their differences:

• CMA -  A Comparative Market Analysis (CMA) is an estimate formed by realtors that base your home’s value on recently sold, similar properties in your area. Agents use CMAs to assist sellers in setting listing prices and aid buyers in making competitive offers.

• Appraisal - An appraisal is a formal valuation conducted on the buyer's behalf, driven by the needs of the mortgage lender. A state-licensed appraiser evaluates comparable homes, considers market conditions, and generates a report for the lender's approval.

How a CMA is Prepared

CMAs are typically prepared by real estate agents or brokers using multiple listing service (MLS) data and local market knowledge. Agents analyze recent sales, active listings, and pending transactions to identify comparable properties and assess pricing trends. By evaluating factors such as square footage, location, condition, and amenities, agents can provide sellers and buyers with realistic price expectations.. Here is an example of what to expect:

When Should You Get a CMA vs. Appraisal

The decision to obtain a CMA or an appraisal depends on your specific circumstances and goals. If you're considering selling your home or refinancing your mortgage, a CMA can give you a general idea of your property's value and help you set a competitive listing price. However, if you're involved in a complex real estate transaction or need an accurate valuation for legal or financial purposes, an appraisal may be necessary to ensure an unbiased assessment.

This is How Realtors Make a Difference

When it comes to discovering the true value of your home, having a trusted Realtor by your side can make all the difference. We are armed with an arsenal of powerful tools and industry experience that elevates the accuracy of home valuations. Through access to comprehensive databases, including MLS listings and historical sales data, we can pinpoint the most relevant comparables tailored to your property's unique attributes. With our expertise in local market trends and fluctuations, we provide invaluable guidance, ensuring your home's worth is assessed with precision.

From assessing recent renovations to evaluating neighborhood dynamics, we bring a wealth of knowledge to the table, offering a holistic view of your property's value. In an industry where accuracy is paramount, partnering with a Realtor unlocks the door to confident decision-making and real estate success.

While Zestimates may offer a quick glimpse into your home's value, they often lack the precision and accuracy of CMAs and appraisals. By understanding the differences between these valuation methods and knowing when to seek professional assistance, homeowners in Folsom, El Dorado Hills, and Sacramento can make informed decisions about their real estate investments. Give us a call if you’re curious to know your home’s value!