When it comes to buying a home in New Albany, it’s important to learn whether you are paying too much. But before you turn to Zillow to see what your dream home is actually worth, we wanted to explain the different ways of determining New Albany home values.
An Appraisal vs. Market Analysis
An appraisal and a comparative market analysis (also called a CMA) are two ways of learning how much a home is worth. But there is a major difference between how both resources are used.
The bank uses an appraisal, where a licensed appraiser inspects the home to determine its value, so that it knows whether the amount for the loan it will give you is higher than the actual value of the property.
Your real estate agent uses a comparative market analysis — which involves looking at prices of similar homes that recently sold, real estate trends in the area, and any upgrades for the home — to determine a competitive listing price for the property. (A neighborhood sold report can help you learn what homes have recently sold for and whether homes in your dream community are in high demand.)
What about Zillow Home Values?
Like we explained in our blog post last week, Zillow value estimates for New Albany homes vary from the actual sales price by about 10% (or, as we noticed, 20% for homes over $500,000). That small error amounts to thousands of dollars!
It is always a good idea to rely on a Realtor’s evaluation of the property so that you will never have to worry whether you are paying too much for your dream home.
Trust the New Albany, Ohio Real Estate Experts
We have been living in New Albany and buying and selling real estate in this community for years, and our dedicated team members work tirelessly to make sure that you are informed about the home buying process every step of the way. As your New Albany buying resource, we put you first, no matter what.
Contact us today and let’s talk about your dream home.