An insight into appraisals and valuations
Jude and Pete on appraisals
A Market Appraisal gives an educated opinion on a property's current market value. For residential properties, this is normally done through a "Comparative Market Analysis" (CMA). To achieve this value, we look at comparative properties that have sold within a certain timeframe.
The market is always on the move. It has natural fluctuations, both up and down. Sometimes there will be huge shifts... some pundits call these "corrections"! Sometimes there will be a slow rise, a slow fall, a stabilisation. There could be a huge crash such as that of 1997 or 2008. Interest rates play their part, the season, even sports victories! Suffice to say, nobody can accurately forecast the market, no matter how many university degrees they have!
All this often makes a CMA sometimes difficult to determine. In a 6 month period, prices could have moved substantially. For some properties, the surrounding area has had very low sales figures. This is especially so for unique or unusual properties. For example a large parcel of land in a built up development zone. Or a huge block of units in an area of freehold homes.