Selling your property involves starting with understanding the CMA process.
What is a CMA you ask? Good question.
A comparative market analysis (CMA) is a report compiled by a local real estate broker (preferably a “Realtor”) that calculates the possible price range of properties similar to yours.
It is much different than an appraisal, and is done by your broker who best understands the current market and trends.
The approximate current value of your property is derived from what a buyer is willing to offer for similar properties in the general vicinity. Since the real estate market changes regularly, the traditional method to estimate market value is to compare it to other properties that sold in previous months. Sometimes this will not be possible and you have to broaden the search. Active homes on the market are not valid reflections of value since there is no way to foresee what they will eventually sell for. Or, if they will sell at all for the asking price.
The best listing brokers try to find comparable homes, in similar neighborhoods, with similar facilities. They will not over or under price your home. A well priced home should see within 1-6 months at the most. It is not always possible to find sold real estate that are exact matches when looking at lot sizes, barn amenities, paddocks etc.., so adjustments are traditionally made to account for differences.
Upgrades, square footage, features, and other factors are taken into consideration. Not all home differences add value – and the dollar value of adjustments do not often match the amount paid for them.
A comparative market analysis report normally results in a price range. Where a home falls within that range depends on the abundance and quality of competing listings and your time restrictions. If you have a short time frame in which to sell your home, your selected price should be more competitive (at either the low end or even less than the price range). This is particularly true if there is an large volume of listings.
In general, the higher you price your home, the longer it may take to sell. In an economy where competition is low and your home is highly desirable, you may have the luxury of pricing at the high end of the range.
A knowledgeable real estate agent could assist you with this decision and provide useful advice on pricing your listing correctly. Incorrectly pricing a property can lead to loss of valuable time and money. Wellsco brokers John and Marisa have the experience you will need to price correctly. Ask them for a comparative market analysis report.