Neighborhood Comp Check
NCC vs. CMA
Our goal is to give you a realistic view of your property's market value as determined by the lending community.
A CMA is a Certified Market Analysis. This is typically performed by a licensed real estate agent and estimates the value of real estate for the purpose of SELLING. This analysis can be a very accurate and integral portion of the real estate cycle and considers a variety of factors in arriving at a conclusion. These factors primarily include a comparison of the property in question to sales of comparable homes; but, it also places considerable emphasis on the current competing market -- which consists of active and pending listings. By analyzing the current supply of competing homes and demand, in addition to properties under contract, the CMA can provide the homeowner with a reasonable expectation of what a home can sell for.
An NCC provides a reasonable expectation of value for the purpose of FINANCING. In theory, the two value conclusions should be the same. However, they can often be quite different, with a CMA providing potentially misleading conclusions with respect to financing. Today's real estate market is largely driven by credit access and availability. As a result, the financeable value of real estate is more relevant and important.
The NCC is different from a CMA in that its predominant emphasis is on very recent comparable sales, with lesser influence from active listings and/or pending sales. The definition and determination of the comparable sale is based on very strict guidelines established at a federal level by Fannie Mae/Freddie Mac and further refined by lenders both locally and nationally. For an appraisal to be considered acceptable by lenders, sales adhering to these guidelines must be utilized and the value is subsequently based in large part on the availability and viability of those sales.
The NCC Value Analysts are highly trained both in the understanding of these guidelines and the appropriate selection of comparable sales, which makes the NCC a valuable and cost effective tool in assisting the consumer and lender with a reasonable valuation guide for the purposes of lending.
In 99% of today's real estate market
MARKET VALUE = FINANCING VALUE
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