CT 3.0 hours Valuation, Marketing, and Listings Course Syllabus
3.0 Elective Hours.
A residential real estate licensee typically uses only the sales comparison approach when valuing properties for a Comparative Market Analysis (CMA). As with the appraiser, similar properties are compared to the site property and additions and subtractions are made to the site property for greater or less amenities.
The opinion of value from the appraiser may not match that of a value derived from a market analysis performed by a real estate licensee. And those two values may not meet the expectations that the seller has, based on the prices that were paid in the neighborhood. Sellers may have very different expectations of the value of their property.
When properties do not appraise at or above their sales price, the buyer and seller have the following options. They can cancel the transaction, and return earnest money to the buyer providing an appraisal contingency is part of the purchase and sale agreement. The buyer can increase their down payment, the seller can reduce the sales price, a combination of both. Lastly, they can order another appraisal, hoping for a better outcome although this is not suggested.
Upon completion of this course, you will have a better understanding of both Comparative Market Analysis (CMA) and appraisals so that you can better assist your client.