Why You Should Use a CMA (Comparative Market Analysis) to Determine the Fair Value of Your Home
Your home's value determines how your home will sell on today's market. If you price your home correctly you can save a lot of money, time, energy, and stress. As your Realtor, my goal is to research and come up with a price that will sell your home quickly and for a fair profit. The closer I can get, the less stress you will endure along the path to selling your home.
Because a Realtor is not an appraiser we have a different way of going about find your homes value. An appraiser has many more options to compare your home with to find that perfect price. So if you have the money I do advice you to hire an appraiser. But if you want to do what most sellers do, then I can find a price a Realtor's way. We have access to records that allow us to look up recently sold homes and their features; around your homes local area. We can see how much they sold for and how much they had to drop in price before their listings found a buyer. We can see how long they were on the market at a certain price or how fast they sold. There are so many aspects that help guide us in to the closest fair market value. There are so many that if you haven't had experience in setting up a CMA it can be fairly challenging.
I believe that by offering a seller the realistic price I am giving them the advantage. Sometimes a seller is given a number that is just to please. The seller then feels good about selling their home and three to six months down the road; their feelings turn around. This is called buying a listing. A seller then feels spiteful toward their Realtor and pulls the listing because it doesn't sell. I feel bad for sellers that go through this. I won't take a listing from a seller that insists it is worth more than ten thousand above my CMA. I don't want to mislead any seller into time, money, and stress. My job is to give the seller less stress, not more. I want my sellers to get the most profit from their home and actually sell the home.
There are many things that influence a homes value. Location can be good or bad; and good to one can be bad for another. Residential homes never gain value from being on a busy road. Commercial, on the other hand, can gain value to a certain point. If there is not enough parking or space for entering and exiting from a busy road; commerial property can lose value. Residential homes can gain value based upon schools, churches, shopping centers, and parks in the area. If a home is too close to any of these then value, can again, be reduced because of noise and privacy. Crime can surely influence value along with traffic. As for the home and property itself there are more factors than I can mention. Some factors are property size, privacy, landscaped, age, windows, roof, flooring, appliances, living space, and much much more.
There is a good reason for a seller to price his or her home correctly. I know there are some factors that can force a seller to list at a certain value, such as, an existing loan or debt. Pricing a home correctly determines whether you are going to sell your home or end up with it sitting, with a for sale sign in the front yard, until the market turns around. The main reason to price your home correctly is the buyer's lender. In the end, if you do find a buyer in love with your home and willing to pay any price for it, the buyers lender has the final say. Remember that little contingency...'Contingent upon buyer finding suitable financing.' Well, if the lender disagrees that your selling price is the fair market value, then the offer is void and you lose your sale.
A CMA is usually free and simple to obtain. Visit a local Realtor's website to find a CMA form or simply send an email asking for one.