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| Photo by Amir Zee, Antigua Guatemala |
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:
1. what homes like yours are selling for
2. how long it’s taking for them to sell, and
3. what their sale prices were in relation to their list prices (the difference between what people 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 primary reason that they’re the most recent.
Moreover, if you have the opportunity (on your own or with your real estate agent), visit some comparables yourself to see how houses on the market compare to yours regarding price and other features.
Setting the right price from the start is among the most critical 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 is, the market sets a value, the price a buyer is willing to pay.
If you need a CMA, please let me know, I will be glad to prepare one for you. I am continuously looking for ways in which to improve the quality of my services offered to my clients; I would like to know what you think by commenting on this post.
