Everyone who has ever sold a car knows they have to first find out how much it is worth and what people are willing to pay for it. It’s easy to gather the information you need to set a price from newspapers, the Blue Book, or online used car sales sites. When you’ve gathered this information you can then set a price that potential buyers will find attractive. It’s really pretty simple and requires very little pricing expertise.
If you want to sell your home, it’s not so easy and it’s certainly not simple. The value of your home is much more difficult to predict and the information available to home sellers can be untrustworthy. Online home valuation sites are fun to play with, but they are based on past sales, not current market factors. Newspaper listings give you some information, but houses are usually so different that it’s hard to compare. Also, please don’t ever rely on your Tax Assessment to know your home’s value!
The best method available to home sellers to learn their home’s current value so they can select the best sale price is a CMA, or Comparative Market Analysis. CMA is the term real estate agents use when they conduct an in-depth analysis of a home’s worth in today’s market.
The best part about a CMA is that it’s free!
How is a CMA prepared?
First, Valerie Greene will walk through your home. It’s optional but if you want a more accurate report, you will want to do this. The home does not have to be in perfect condition. However, property condition does affect price, so if you plan to do work on the property, let her know. At this point Valerie Greene may recommend improvements to increase your home’s value.
Second, Valerie will research information about comparable properties in the area, usually using a real estate industry resource called the Multiple Listing Service. This includes:
- Properties that have sold and closed within the last 12 months (Best measure of value)
- Active listings – properties currently for sale
- Pending sales – listings that have sold but not yet closed
- Expired listings – properties that did not sell during the listing period (usually demonstrate an overpriced listing)
Lastly, Valerie Greene will suggest a probable selling price. Don’t be surprised if a CMA results in a price range rather than a set price, particularly in markets were there are price differences due to property size, age, architectural style or physical condition.
Please note that it will take three business days (3) for you to get your CMA report in a pdf format.
What can you expect to see in a CMA?
A completed CMA is presented in the form of a report, which includes the selling price, detailed information about your home, and the comparable properties that were researched to determine its value. Because the price derived from a CMA is somewhat subjective, Valerie may include brief statements on the perceived selling points your home.
A CMA is not an appraisal.
A real estate appraisal is a comprehensive evaluation performed by an independent professional appraiser. With a CMA, the agent’s experience in the business and familiarity with the local area can affect the accuracy. Typically, a CMA prepared by an experienced agent with good knowledge of the local market is right in line with your home’s appraised value. A CMA can therefore be a very useful tool in a real estate transaction.
How can I get a Free CMA? Just send me an email with your property address, year built, overall condition and latest renovation and the best way to contact you. Also, please note that I only do CMA for the owner of the property.
Source: Home Gain