Real Estate Terms and Definitions:
𝐂𝐨𝐦𝐩𝐚𝐫𝐚𝐭𝐢𝐯𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 (CMA) - A comparative market analysis is not an appraisal it is an examination of the prices at which similar or comparable properties in the same area recently sold. The analysis typically consist of at least 3 sold comparable homes along with 3 active comparable homes that are as similar to the subject home as is possible. The sold comparable properties sold date should vary based on the local market area. Adjustments to the comparable properties sold such as the amount of living space, age, and other differences. The adjustments are usually on major item differences and only reflected as an adjustment to the sold price of the comparable property. The purpose of a comparative market analysis is to arrive at a marketing price range and it is not an appraisal.
Multiple Listing Service (MLS) - A database of information about homes, land, lots and commercial properties that is offered by Realtors for sale. The listing service is more commonly called the mls. It is the database that contains the details about properties such as the living space, acreage, lot size and the most important the offering price known as the listing price. The multiple listing service allows the Listing Broker to offer properties with a set commission amount as a means to attract Co-Agents to market the property to their respective buyers. The results is more, quicker and easier sales providing great value to the Seller(s).
Living Space - or square footage size of the home is calculated by multiplying length by the width. It is also characterized by heated space. The living space or square footage of the home should be calculated only on the heated space. Space not heated can be noted as additional space but should not be considered when marketing at home unless disclosed and easily understood that it is not heated. The calculation of living space is at times a challenge due to the shape and design of a home. It is not unusual for the living space to be slightly different depending upon the professional who did the measuring as well as the device used to measure the home. The living space as provided by the taxing authority is the most frequently square footage used in marketing a home. It is strongly suggested that the Buyer perform their own measurements to their satisfaction.
The same caution for purchasing land or a build lot about the size of the land or lot should be determined by the Buyer(s) to their satisfaction.
Real Estate Appraisal - is property valuation or land valuation it is the process of developing an opinion of value, by a licensed Appraiser for real property. Real estate transactions often require appraisals because they occur infrequently and every property is unique. The Appraiser will provide a value for the home or property. This value is used by banks and mortgage companies as the basis for make a mortgage.