SO, YOU WANT TO SELL YOUR HOME?
Pricing it right is essential!
Selling your home is not a simple process and setting the wrong price could be disastrous. Setting the price too low means you’ll get less money for your home; setting it too high means it might not sell at all. The value of your home is difficult to predict and the information available can be misleading.
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.
How is a CMA prepared?
First, an agent will walk through your home and assess the various features. 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 the agent know. At this point the agent may recommend improvements to increase your home's value. Be careful here as more often than not, renovating your property does not yield the expected returns. Follow this link for more info on this.
Second, the agent 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
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
Lastly, the agent suggests a probable selling price. Don't be surprised if a CMA results in a price range rather than a set price, particularly in markets where there are price differences due to property size, age, architectural style or physical condition.
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, the agent 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. Your chosen lender will often ask for an appraisal to be conducted before providing your funds. 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.
What use is a CMA if I am not selling?
What if i'm not selling?
Even if you are not selling your home a CMA can still be very useful. A comparative market analysis will allow you to determine the current value of your home and in turn you can calculate your current level of equity. This is essential to know for future financial planning. Most agents will be happy to perform a CMA on your home at any time, FREE of charge. Click here to arrange a CMA on your property.