Can A Comparative Market Analysis Help You

Dated: 05/03/2018

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Can a Comparative Market Analysis help you?

To get an estimate of how much youshould list your property for, you canrequest a Comparative Market Analysis(CMA). A CMA is an informal estimate ofmarket value, based on sales of comparableproperties in your area. It generally takesinto account various aspects of your home,including size, features, and annual costs.Reviewing comparable homes that havesold within the past year, along with thelisting or asking price on current homes forsale, should help you determine a fair saleprice for your property. 

CMAs can include homes that are currentlyfor sale and those which have recently sold. They can cover areas as narrow as one ortwo streets surrounding your home, or asbroad as an entire subdivision. 

The CMA is an informative tool, but likeany tool, it doesn't work by itself. For thisreason, the CMA will always need to beinterpreted by a professional.Remember, too, that Comparative Market for sale and those which have recently sold. 

 Remember, too, that Comparative MarketAnalysis is also used as a buying tool; realestate agents will typically share CMAreports with their clients as they considerbuying homes in an area or neighborhood.Just as you can use the CMA to ask thehighest possible price for your home, buyerscan use it to roughly determine if yourhome is being listed at a fair market value.

Price It Right

When you're ready to sell, don't make themistake of overpricing. It could provecostly if it slows down the sale or makesother homes look like a better value. If you overprice your home, you couldeasily disappoint buyers who will compareyour home to other homes within thesame price range. Plus, you may eliminatea pool of potential buyers who areshopping for homes priced closer to yourhome's true market value.....causing youto lose customers during the crucial firstweeks that your home is on the market.And the longer your home stays on the market, the more buyers may begin to reason that there issomething wrong with the property. 

Avoid a "price high then drop" strategy-you run into the risk ofbuyers believing that the home has flaws-or that you aredesperate to sell. If you accept a bid at an inflated price, yourbuyer may face financing problems, because an overpricedhouse will not appraise for the selling price.

It's a good idea to hire a real estate appraiser for an unbiasedestimate. Then consult with a real estate professional who canhelp you determine true market value based on a comparablemarket analysis. The key is to work with your real estate professional to price right and create a strategic marketingplan that creates excitement from the start.

Sellers: protect yourself and your home

Never allow random house-hunters into your homeunescorted. A serious buyer will be working with a real estateprofessional or should be willing to contact your agent toschedule an appointment. Also, always lock your valuablesaway before an open house. Many people will be walkingthrough your house and it is impossible to monitor all of theareas of your home at the same time.

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Gina Eckert

I have always enjoy helping others, what better way than to help make the dream of home ownership possible. Let my expertise guide you through the home buying or selling process....

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