Comparative Market Analysis (CMA)
Our job as your broker during the marketing phase of the selling process is threefold:
- Price your home correctly
- Market it to potential buyers
- Generate buyer and agent traffic through your home
In order to understand where your home fits into the overall picture of the market, we provide you an initial Comparative Market Analysis (CMA) as well as periodic updates to make sure that we are realistic in our pricing and approach.
By carefully reviewing the locations and features of comparable homes, you will be better able to approximate your property’s ultimate selling price, which is the highest price that the market will recognize and pay. Approximating your property’s selling price will then help you to strategically determine a listing price that enables you to successfully sell your property for its top market value.
The Comparative Market Analysis covers comparable properties in three different areas:
- Currently for sale
- Recently sold
- Sales pending
Looking at the properties currently for sale will enable you to assess the alternatives from which a serious buyer has to choose. It will also help to insure that you do not under-price your property.
Looking at the properties that have recently sold will enable you to see what home sellers in your area have actually received over the last few months. It is also important to note that these selling prices are used by lending institutions to determine how much they will lend buyers for a home like yours.
Finally, looking at properties that failed to sell will help you to avoid listing your property at a price that does not attract qualified, motivated buyers. As you will see in the pages ahead, overpricing a property often results in sellers actually getting less money than they would if they had priced it realistically in the first place.
The bottom line is that studying what has worked (and what hasn’t) in your area will help you to develop a clear picture of the potential market for your property. This will in turn enable you to strategically price, position and stage your property such that you sell it for top dollar in a reasonable time frame with the least inconvenience for you.
