Intelligent Valuation vs Real Estate Agent Comparative Market Analysis
A Comparative Market Analysis (CMA) by REALTOR® or real estate agent is a common tool for setting listing prices or making offers. While real estate agents have access to MLS Multiple Listing Service data and local market knowledge, their analyses can lack the rigor and impartiality needed for more critical financial decisions.
What Could Be Missed by a Real Estate Agent CMA
- Precise adjustments for differences in lot size, condition, or amenities
- Potential bias in selecting comparables to support a desired value
- Limited data access, possibly missing off-market or private sales
- Lack of formal valuation training leading to inconsistent methodology
- Overlooking legal or physical issues such as unpermitted additions
- Insufficient consideration of location attributes like views or proximity to popular places
- Under- or overvaluation of renovations and additions
Benefits of Intelligent Valuation
- Objective and impartial review focused on accuracy
- Use of standardized valuation methodologies ensuring consistency
- Comprehensive analysis including recent renovations and unique property features
- Affordable and fast service providing credible, unbiased estimates
Use Cases
- PMI Adjustment: Not accepted by lenders, but valuable for sellers, buyers, and investors in decision-making
- Loan Officer Tasks: Useful for pre-approval and risk assessment
- Underwriter Tasks: Not for final approval, but helpful for initial review
- Estate Planning: Good for informal planning, not for legal filings
- Homeowner Knowledge: Provides actionable insights for renovations and listing prep
- Real Estate Agents and Others: Supports negotiations and pricing strategy
Intelligent Valuation offers an impartial, systematic, and detail-oriented approach over a typical Real Estate Agent CMA. An agent might overlook a nearby cell tower or undervalue a recent addition, but an Intelligent Valuation with local expertise and systematic analysis adjusts for such factors, resulting in a more accurate and defensible value. The biggest advantages are its unbiased analysis, consistent methodology, and careful consideration of upgrades, location, and importantly, property quality. This makes it the best choice for sellers wanting a credible asking price, buyers seeking a fair offer strategy, and investors needing a quick but reliable second opinion before making a move.
Intelligent Valuation offers a credible, unbiased choice for strategy, investing and more.
