Comparative Market Analysis
A home seller’s first thought when it comes time to sell is "what is my home worth?" Not only does a seller want to know what their home is worth but more importantly, how much will they net from the sale of their home.
This is when a homeowner turns towards a Real Estate Agent to prepare a Comparative Market Analysis or CMA to determine the fair market value of a home.
The single most important thing you need to do when selling a home is to price your home correctly.
Your CMA report will use historical sold data to help you determine your home’s correct asking price or list price to get it sold.
WHAT IS A CMA IN REAL ESTATE?
A Comparative Market Analysis or CMA is a report that uses current and recent historical data to identify similar homes that have sold in a neighborhood to determine the most likely selling price or the fair market value of a home.
The keyword here is data!
A number is not pulled out of the air, it isn’t based on a gut feeling, what your neighbor says it is worth or even what the Zillow Zestimate says your house is worth….
It is based on data!
WHAT IS INCLUDED IN A CMA REPORT?
Your Comparative Market Analysis should include the following:
Market Overview- Knowing where the current real estate market is and where it is headed will help us price your home accordingly. A failing market points to the fact you should be pricing your home slightly below market to compensate for decreasing home values. Where an appreciating market may indicate you can price a little more aggressively.
Comparable Homes That Have Sold- Your home will be compared to 3 or more similar sold properties to help give you a range of the pricing of what similar homes have sold for in your market.
Note that a seller can ask any price they want for a home but it is the sold price that indicates what the market is willing to pay.
Adjustments- In an ideal world, we could find 3 homes that are identical to yours that have sold. But in reality, every home is unique. Pricing adjustment will be made to adjust for amenities, appeal and location to either raise or lower the sale price of a comparable home.
Comparable Homes That Are On The Market Or Under Agreement- Homes similar to your home that are currently for sale give you an idea of what your competition will be when you list your home.
Under agreement homes help identify where the market is headed by seeing how quickly homes are having offers accepted on them or days on market. Shorter days on market indicate the market is appreciating, longer days on market could indicate homes are depreciating.
Pricing Recommendations- Finally your CMA will indicate a most likely range your home will sell for based on the sold comparable properties and where the market seems to be heading.
Overpricing your home is one of the biggest mistakes a seller can make. We will work closely with you to ensure you fully understand the Market Analysis for your home.