As you begin the process of selling your home, you will more than likely be introduced to the “Competitive Market Analysis”. The CMA will give you a great idea of the current market climate in your immediate area. It is important to know and understand the most information possible about the homes in your area and the homes that will be competing with yours for the sale. This will allow you to competitively position your home in the market. If you are working with a real estate professional, you will surely already have a CMA prepared for you. If you are not, and you still haven’t utilized a CMA in your home selling process, then you need to get one as soon as possible.
What exactly is a CMA
When preparing a CMA, I take an in-depth look at homes in your immediate area that share similar characteristics, amenities, and upgrades. Crucial characteristics are location, GLA, lot size, quality of construction, and condition. I pull these comparable homes from the previous 6 months of sales in your area. It is important to note, just because your neighbor listed their home for X amount, doesn't mean it will sell for that. A seller can ask for any price they want… if the home actually moves at that price is a completely different story. This is why it is crucial you have a professional prepare a CMA for you so you can accurately and effectively price and position your home to sell!
Reason #1: The more you know…
In most cities here in the East Valley, the market continues to become more seller centric. Inventory is low with many home owners still holding on to their investments since 2008-2009. Selling a home today may be easier than it has been in the past seven years due to this environment. Having and understanding a CMA from the beginning of the process will allow to intelligently respond to offers that come in. With that being said, expired listings in your area should serve as a warning to you about listing your home outside of the market. The home will sit, rack up days, and receive low ball offers.
Reason #2: Price Your Home To Sell Your on Your Terms!
When you receive a prepared CMA, there will be different price points. Depending on your situation and goal, you can price your home accordingly. If you have other ducks you need to get in a row before you home sells, then picking the price on the higher end may be the best option you like. Likewise, if you need to relocate or move soon, you may choose to pick the pricing point at the lower end. This will assure your home moves quickly and will meet the appraised price. Keep in mind, if your home is overpriced and the market doesn’t support the value, even if it sells, it will not appraise. You do not want this headache. If you have any questions on how this works, feel free to shoot me an email email@example.com.
Reason #3: Know The Buyers In Your Market
The CMA will give you great statistics for the homes that have sold in your area. You will not only see the competitive sales but also see the average days on the market, initial list price, and final sales price. This information will give you great insight on what you can expect. Are homes in your area regularly meeting listing price? What is the median sales price on this homes? How many days were they listed? You will get all of this information so you can anticipate your potential buyers behavior which in turns gives you the edge on negotiations!
Now you understand the importance of obtaining a Competitive Market Analysis early in the selling process! Be sure to fill out the form here on the home page here or shoot an email to me at firstname.lastname@example.org! Hope you have a great day and Happy Friday!