The first step in selling a home is establishing its value. There are several methods available to assist in this process but the best and most accurate technique is referred to as a Comparative Market Analysis (CMA).
A Comparative Market Analysis is not the same as an appraisal. An appraisal uses the same standards required by lenders in order to establish the market value of property when used as collateral. An appraisal will also factor in certain legal issues such as divorce or other estate planning circumstances.
A Comparative Market Analysis, on the other hand, evaluates similar, recently sold homes (referred to in the industry as comparables) which are located in the vicinity of the property you desire to buy or sell. A Realtor is able to perform a CMA with the help of trade specific software and information to establish a price range for the real estate in question. This amount is commonly referred to as Market Value or sales price. Once the Market Value has been determined, the Comparative Market Analysis can then be used as a guide for determining what the appropriate amount of the listing/offer should be.
What Does A Comparative Market Analysis Entail?
First, I will walk through your home and it is not necessary to have your house in perfect condition when I do so. However, keep in mind the condition of your property does affect the price. If you intend on doing work to the property, let me know in advance. During this step I may identify simple improvements or changes to increase the value of your home.
Next, I will thoroughly research the comparable information on similar properties in the area. I do this using an industry resource available to Realtors referred to as the Multiple Listing Service (MLS). This examination includes:
- Homes which have sold and closed during the last 12 calendar months
- Active listings – these being properties which are currently still for sale
- Pending sales – the listings which have an accepted offer, but have yet to close
- Expired listings – the properties which failed to sell during the period they were listed
Lastly, I will determine a selling price based on the information compiled from the Comparative Market Analysis evaluation and present it to you for your consideration.
I provide this service to my prospective clients 100% free of charge with no hidden costs or obligations. If after examining the information I’ve compiled you decide now is not the best time to list or buy the property in question then you simply need to say so. I don’t employ any type of high pressure sales tactics, just keep me in mind should your situation change and I might be of help.
Fill out my contact form to schedule your free Comparative Market Analysis today!