A question that’s always top of mind for sellers is, “What is my home worth?” Many sellers don’t understand that there are many factors that will affect a list price: condition of a home, staging of a home, market value based on comparable sales, active listings, time of year, and more!
A Comparative Market Analysis (CMA) is comprised of comparable “comp” homes that have recently sold with many similarities for top REALTORS® to get a good sense of a home’s value. Well, what about the unique differences then?
Gina Barton, D&C Realtor® says, “This [CMA] is an incredibly valuable tool both when helping sellers determine a listing price and also when helping buyers ensure they are not overpaying when making an offer on a home. You can use properties for a CMA going back no more than one year. Typically, 3-5 properties are included.”
Often, the homes displayed in a CMA will look to include common denominators such as:
- Location – if the home is in a neighborhood, comps are usually limited to that neighborhood, if the home is remote, then comps can be sourced up to a couple miles away! Gina adds “Location is also a vital part in determining the value of a home.”
Similar square footage & lot size
Same quantity of bedrooms & baths
Amount of storage space (garage, shed, basement, attics, etc.)
Gina also adds “It’s important to not just look at list prices, look at final close price and do not forget to factor in concession amounts. Current listings will tell you what your competition is like. Expired listings will tell you pricing the market may not support. Listings with a pending sale can give you a general idea of what similar homes are selling for right now and how quickly they sold.”
When homes don’t compare and include recent updates that can’t be found in the comps, price adjustments can certainly be made accordingly. Please ask our team how we can help and if you’d like a professional evaluation of the value of your home. At Diane & Crew, we take pride in developing a strategy to sell your home for top dollar!
Stay with us for more tips on home decor, real estate market updates, & local biz. Keep reading the D&C Blog and reach out to firstname.lastname@example.org with all of your questions! We love consulting with you prior to buying/ listing your home to help simplify the process, it’s one of our joys!
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