COMPARATIVE HOME MARKET ANALYSIS
Setting the right price from the start is among the most important steps toward successfully selling your home. This requires taking a close look at what other houses are selling for to judge the relative value of your home. No matter how priceless your remodeled kitchen or finished basement are, the market sets a value—the price a buyer is willing to pay.
One of the key ways to compare your house to others on the market is to look at a comparative market analysis, or “CMA.”
What’s in a Comparative Market Analysis
A comparative market analysis is a report, usually compiled by a real estate professional right before your house goes on the market. A CMA gives you information (sometimes referred to as “comps”) about houses similar to yours (in size, amenities, and location) that are either on the market, have sold, or were listed but expired (usually, because they were priced too high and no one bought) within a reasonably recent time period. It's ideal to have your CMA look back no more than three months when the market is in transition, and no more than six months in a more stable market.
A good CMA can tell you:
what homes like yours are actually selling for
how long it’s taking for them to sell, and
what their sale prices were in relation to their list prices (the difference between what people actually got for their house and what they asked for).
It’s especially important to pay attention to the prices of pending, rather than closed, sales, for the basic reason that they’re the most recent.
Contact our office today for a free, no obligation CMA on your home. All information provided will be kept confidential.