The Comparative Market Analysis (CMA) is one of a realtors most important tasks and should not be taken lightly. The eventual asking price for a home and the realtors knowledge of the current market environment are absolutely imperative to the outcome of a smooth transaction. Its the difference between sitting on the market for months on end or selling in the first couple of weeks.
A CMA will take into account and analyze recent sales (within the last 3 months preferably) in the subject property’s neighbourhood. These sales should be of similar square footage, style and amenities (eg. garage). The analysis part of the evaluation takes into consideration the condition and improvements of the comparable property’s to the subject property. It is not an exact science, so different realtors can come up with different values depending on their opinions and knowledge of improvements and amenities. This is exactly why you should interview several realtors! The Asking price matters more than you think.
Competition matters too! In an accelerating market place values can be hard to establish accurately because past sales are no longer the benchmark. This also goes true in a decelerating market. The more recent the Sales, the more accurate an evaluation. I include the Competition, which are the Active sales on the market. These will dictate to a great degree how well your house will do in the marketplace. Know your competition and price accordingly.
I have done thousands of CMA’s and I can assure you my Pricing advice will be honest regardless of others opinions or my ambition to attain a listing. Yes, unfortunately be wary of lofty evaluations. I can’t emphasize enough, how much an asking price matters. The longer a house sits on the market the less it eventually fetches in value. Your best price will come in the first couple weeks.
I look forward to helping you with your CMA! If you need help with this…..Go to the home evaluation button on the home page. Fill in your information and lets get started!