Pricing your Sherwood home can feel like aiming at a moving target. You want a number that attracts strong offers without leaving money on the table, and you also need a value that will hold up once a buyer’s lender gets involved. The two tools you will hear about most are the CMA and the appraisal, and they are not the same. In this guide, you will learn exactly how each works in Sherwood, when to use them, and how to protect your sale if the appraisal comes in low. Let’s dive in.
CMA vs. appraisal: key differences
Who prepares it
- CMA: A licensed real estate agent or broker.
- Appraisal: A state-licensed or certified appraiser.
Purpose
- CMA: Pricing strategy and marketing guidance before and during your listing.
- Appraisal: An independent opinion of market value used by lenders, courts, estates, and sometimes buyers or sellers.
Rules and standards
- CMA: Advisory tool with nonstandard methods that vary by agent.
- Appraisal: Highly standardized and governed by USPAP and lender or agency requirements.
Cost and timing
- CMA: Typically free and fast.
- Appraisal: Fee-based, includes an on-site inspection, and takes longer.
Legal and underwriting weight
- CMA: Informative but not used for loan approval.
- Appraisal: Carries underwriting weight and can make or break financed deals.
What a CMA includes in Sherwood
Method sellers can expect
A CMA pulls recent closed sales that are most similar to your home in size, age, lot, and condition. Your agent also reviews active and pending listings to read current momentum and buyer competition. Adjustments account for differences like square footage, bedroom and bath count, updates, location, and lot features. The result is a price range and a strategy for how to enter the market.
Strengths sellers value
A CMA is fast, local, and tailored to your goals. It uses current MLS signals like days on market, active inventory, and pending trends to position your listing. You can review multiple price paths, such as listing at market to attract multiple offers or listing slightly higher with a longer negotiation runway.
Limits to watch
CMAs rely on professional judgment, so two agents may produce different ranges for the same home. They carry no underwriting weight, and a lender will still order an appraisal in a financed purchase. Strategy and incentives can influence pricing recommendations, so make sure you understand the comps and the rationale behind adjustments.
How appraisals work in Sherwood
Method and standards
An appraiser inspects your home, documents features and condition, and then analyzes comparable closed sales. They reconcile three approaches where applicable: the Sales Comparison Approach for most single-family homes, the Cost Approach for newer or unique properties, and the Income Approach for rentals. The final report explains the data, adjustments, and value conclusion for the client who ordered it, often the lender.
Strengths
An appraisal is an objective, regulated opinion with standardized forms and oversight. Lenders rely on it to decide how much they will lend. The inspection and measurements create a record of condition and improvements that can support legal or financial decisions.
Limits and realities
Appraisals reflect a moment in time and must emphasize closed sales. In a fast-moving market, that can lag current buyer demand. When Sherwood activity is thin, appraisers may widen the search area or time frame, which increases adjustments and can widen the value range. The appraiser’s duty is to the client who ordered the report, usually the lender.
Local valuation factors
In Sherwood, limited recent sales within certain neighborhoods can require broader comps or older data. Permitted renovations with receipts are more likely to receive credit than undocumented or unpermitted work. Lot attributes, view, and any floodplain, wetland, or zoning considerations may affect value. Seasonal shifts, including spring activity, and the mix of new construction versus resale can also shape outcomes.
When to order each
Get a CMA first
Interview one or more listing agents before you hit the market and request a CMA to set pricing and marketing strategy. A CMA helps you choose a launch price, prep plan, and negotiation approach based on current local demand.
Consider a pre-listing appraisal
Pay for a seller-ordered appraisal when the home is unique, high value, part of an estate, or when recent comps are scarce. It can reduce surprises later, but the buyer’s lender will still need their own appraisal if the purchase is financed.
During escrow with a financed buyer
Expect a lender-ordered appraisal after underwriting begins. Build time for this step into your timeline. If value comes in low, you will work with your agent to respond quickly with data and options.
Prep checklist for a smooth appraisal
- Fix obvious maintenance issues, including safety or functionality problems.
- Gather documentation for improvements, such as permits and invoices.
- Prepare a concise fact packet for the appraiser: a list of recent comparable sales and relevant active or pending listings, with brief notes on why they compare well.
- Provide floor plans or measurements if available.
- Ensure the appraiser has clear access to all rooms, systems, attic, and crawl spaces.
- Share HOA documents, special assessments, or community amenities that may influence value.
Handling a low appraisal
Step 1: Confirm accuracy
Review the report for factual errors: bed or bath count, square footage, missed permitted upgrades, or incorrect lot data. If something is wrong, request a correction through the lender’s appraisal review process.
Step 2: Request reconsideration of value
Submit additional closed comps or clearer documentation that supports your contract price. Keep it factual and concise. Your agent can help package data in a way that respects appraiser independence.
Step 3: Negotiate solutions with the buyer
Common paths include splitting the difference, the buyer bringing additional cash to cover a gap, adjusting closing credits, or revisiting contingencies. Your strategy depends on demand, timelines, and your goals.
Step 4: Explore a second appraisal
If allowed by the lender and contract, a second appraisal might be possible. This is not guaranteed and should be weighed against timing and market leverage.
Step 5: Consider contract options
If financing contingencies allow, either party may choose to terminate. In strong demand scenarios, you may prefer to return to the market; in balanced conditions, a price adjustment may be the faster path to closing.
Timeline and costs in Sherwood
CMA
- Turnaround: Often same day or within a few days after your agent interview.
- Cost: Typically free.
Pre-listing appraisal
- Scheduling: Commonly 1 to 2 weeks to schedule, with a report delivered several days after the inspection depending on workload.
- Cost: Paid by the ordering party and varies by property type and complexity.
Lender appraisal during escrow
- Scheduling and delivery: Depends on lender, appraiser availability, and overall market pace. It can add about a week or more to closing if issues arise.
- Cost: Typically paid by the buyer as part of loan costs.
Local data sources to support value
- RMLS and local MLS data for current Sherwood and Washington County sales and inventory.
- Washington County Assessor for tax records, lot details, and prior assessments.
- City of Sherwood planning and building departments for permit history and zoning.
- Oregon Appraiser Certification and Licensure Board for state licensing standards.
- The Appraisal Foundation and USPAP for national standards.
- Fannie Mae, Freddie Mac, HUD/FHA, and VA for lender appraisal guidelines.
- National Association of Realtors for CMA and market analysis best practices.
Bottom line for Sherwood sellers
Use a CMA to set your launch price and marketing strategy. Consider a pre-listing appraisal when your home is unique or comps are thin to reduce risk. Document your upgrades, permits, and relevant comps so you can respond quickly if the lender’s appraisal lands below the contract price. With the right preparation, you can price confidently and navigate valuation steps without losing momentum.
Ready to price smart and sell with confidence in Sherwood? Connect with Ty Lankheet for a data-backed CMA and a step-by-step plan to position your home for a successful appraisal and closing.
FAQs
Can a CMA be used for a mortgage approval?
- No. Lenders require an appraisal from a state-licensed or certified appraiser for underwriting; a CMA has no underwriting weight.
Should a Sherwood seller pay for a pre-listing appraisal?
- Consider it if your home is unique, high value, part of an estate, or if recent comparable sales are scarce; it reduces surprise risk but does not replace the lender’s appraisal.
What are my options if the appraisal is lower than the contract price?
- You can request reconsideration with better comps, renegotiate price or credits, have the buyer bring more cash, seek a second appraisal if allowed, or exit under financing contingencies.
How do agents and appraisers choose comparable sales differently?
- Both prefer recent, nearby closed sales, but appraisers prioritize arm’s-length transactions and standardized documentation, while agents also weigh active and pending listings for real-time pricing strategy.
Can I share my own comps and documents with the appraiser?
- Yes. Provide factual comps, permits, and improvement records; the appraiser must maintain independence and will apply professional judgment when weighing your information.
