A Comparative Market Analysis Will Help Determine The Fair Market Value Of Your Home
So you sit in the corner of the kitchen, and sip your morning cup of coffee. Although the news is fantastic, and the opportunity magnificent, leaving your home is bittersweet. For the next hour you reminisce over the meals that you prepped in the custom kitchen that you and your mother-in-law designed.
- You smile thinking of how you both fell in love with the granite counter tops, and how you hovered over the technician while he installed them.
- You think about the nights that you slept on the living room sofa, to be closer to your son when he had the flu. Split bedroom floor plans are great for privacy, but not so great when it comes to taking care of a sick child.
- Finally, you step out on the back patio that your husband built at your request and you realize, your home has been upgraded through the years.
- Now your decision to enclose the garage doesn’t seem like a great idea.
- Did adding a deck add to the value of the home?
- And what about the swimming pool? Will the buyers that use USDA home loans be excluded because of the in ground swimming pool?
With so many questions, you decide to speak with a real estate agent. You will need a Comparative Market Analysis, or (CMA), to determine the fair market value of your home.
What Should A Real Estate Comparative Market Analysis (CMA) Include?
The specific CMA that the listing agent provides to the seller will depend on the expertise of the real estate agent agent. A CMA can range from a few pages, to several pages of data. Still the CMA should include:
- Active listings- Active listings are important because they will show the seller the competition. It is very important to know the price of other homes on the market. Please keep in mind that the price of these homes may not reflect market value. Sometimes these homes may be overpriced.
- Sold Listings – In my opinion this is the most important category of every CMA report. It shows what homes have sold, and for what price they were sold, in the last six months. These are your comparable sales. The price obtained for these homes will help to determine the fair market value of your home.
- Pending Listing- These listings were once active listings that are waiting to close. The sellers and buyers have agreed on a sales price, but no one will know the exact price until after the closing date. It is not realistic to base a sales price on this data, because the home may close for a price much below the asking price. It may have also been in a bidding war, and closed for a much higher price than the asking price.
- Expired Listing- This category should include all listings that were placed on the market, but did not sell in the last six months. This should include all cancelled, withdrawn, and off market listings. This category is important because it shows that a listing can expire if it is priced too high. It is important to mention that some listings expire because of needed repairs, and sellers’ remorse, as well.
Obtaining a thorough CMA will help a seller to decide upon a fair market price when listing their home. Any good real estate agent will not list a home to just have a listing, but will list the home to help you sell it.
Let Me Get You Those Keys,