Do it Right, Get a Comparative Market Analysis

[Charles Heyward]

This is for all those who are getting ready to put their house for sale; One question to you, did you get a comparative market analysis (CMA) done? Sellers, this is a very crucial part of the sale, one that will help you to get the sale done quickly. I have seen a lot of cases where because of the wrong pricing, the sellers waited really long for any sale to happen.

Ask your real estate agent to prepare a CMA report, so that you get an accurate assessment of the market value of the house. The reports are generally offered as a complementary service.

This is how it will happen; your real estate agent will come to your house and inspect the property. Don’t worry if the house is not shiny clean at this point as the assessment will not be elaborate. However, the home must be tidy enough for him to make an accurate judgment of the condition. An important note here that in case you are planning to make any changes to the property, do inform the real estate agent about it.

After inspecting your house, the real estate agent will look at other houses selling in your area. He may use Multiple Listing Service (MLS) or have a general idea about the houses selling in a particular area if he is experienced. He will also consider data such as available homes for sale, pending homes, homes sold in the last six months, average prices, prices per square foot and days on the market to determine the current selling price of your house.

Sellers, this may seem more like an appraisal but it is different because it does not require any upfront payment and a licensed appraiser does not do it.

Cautions/Word of Advice

Get the CMA process done before your home is listed for sale.

Be careful of the real estate agent you choose - Despite getting data from the same source, different real estate agents will give different estimates for your property. This is because some agents may miss out on important information associated with specific location and ground their estimates solely on comparative pricing. On the other hand, an experienced local agent will consider all parameters.

In any case, house prices are all about location. A home close to a commercial area will sometimes sell for more than a property on the outskirts. So, an experienced agent will tell you which parameters affect the selling price of your home. Moreover, if he has worked with clients in your neighborhood he will know what circumstances or conditions led to the quick sale of the house or why it was sold at a higher price.

Therefore, choosing a localized and experienced real estate agent is important to have an accurate CMA report.

Best,
Charles