It’s all about price, right? When you want to sell your home, the most crucial piece to the puzzle is getting your asking price correct. If you’re too high above market value, you won’t get the traffic you need, and if you’re too far below, you’re selling yourself short and missing out on money. The best way to ensure you’re pricing your home correctly is to work with a realtor who can complete a comparative market analysis (CMA).
What’s a Comparative Market Analysis?
A comparative market analysis is a report generated by a realtor providing information on homes around yours. This information can help you determine the most appropriate listing price for your home.
How Is a Comparative Market Analysis Generated?
A realtor searches for information about comparable homes in your area that have recently sold, are pending sale and/or are on the market. The report will tell you what their listing price was in relation to the actual sale price and give you a good picture of what homes like yours are selling for. A good CMA should look back three months or less when the market is in transition and no more than five months in a more stable market. As an added bonus, you may want to visit a few of the listed homes to get a feel for your competition.
What Types of Amenities Are Compared?
When choosing homes to use in your CMA, realtors often look for homes that:
- Have similar square footage to your home
- Feature the same number of bedrooms and bathrooms as your home
- Have a comparable-sized lot
- Are located near you
- Have similar upgrades to yours
- Are about the same age as your home
- Feature similar amenities, like a garage or pool
What Will Your Comparative Market Analysis Tell You?
You CMA report will give you an idea of how long homes in your area are staying on the market before selling. It will show you their asking prices and selling prices, allowing you to evaluate where you should best position yourself with price to meet your needs. If you are not in a hurry to sell, perhaps it’s worth it to you to start out at the higher end of your range and lower it slowly as needed. If you need to get out of your home ASAP, it’s likely worth pricing your home within the range of the actual selling price to allow you to sell quickly. Your realtor will walk you through the information and help you make the best decision.
A CMA is extremely helpful in determining your asking price, but it’s important to talk with your realtor about additional features of your home and your situation that could affect your price. Realtors are experts in the field and have access to numerous tools and resources to help you make the best decisions every step of the way.
For information on generating a CMA, contact me! I’d love to answer your questions and guide you through the sale of your home.