Have property but not sure what it’s worth? We can help.
AFM uses a comprehensive market analysis approach to integrate the fields of appraisal theory with current or alternate land use and combines that with local knowledge of environmental issues and market behavior to provide the best assessment of the client’s property. With our extensive awareness of market conditions and deep analysis of competitive land parcels we can provide the most informed and accurate estimate of what your land is worth in today’s market.
Appraisal vs. Comparative Market Analysis
Theoretically, they should both be the same number. But generally they are not. Here’s why:
An appraisal is an opinion of value. There are numerous types of value (market value, investment value, use value) - reflective of the numerous reasons why people or companies own property.
An appraisal is performed by an appraiser, a licensed professional who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
Appraisals are generally required for federally-related transactions, which are any real estate-related financial transactions which a federal financial institution or regulatory agency engages in, contracts for, or regulates. An appraisal may also be required for tax purposes, such as a charitable contribution or estate taxes.
Ultimately, an appraisal answers the question: “How much would others in the market for a particular property type with a particular use be willing to pay for the subject property?”
A "comparative market analysis" (CMA, or also referred to as a “broker price opinion") is an estimate of the probable selling price of a property. Price is a fact and represents the amount asked, offered, or paid for a property. Price does not specifically consider or adjust for motivations of buyers and/or sellers or necessarily for other potential uses of the property.
A CMA is prepared by a licensed real estate broker. A CMA is not valid for financing purposes, especially those involving federally-related transactions, but may be appropriate for other non-lending related uses.
Ultimately, a CMA attempts to answer the question: “How much would someone be willing to pay for the subject property?” with limited consideration of a particular use or a particular type of buyer.