Whether buying, selling, or refinancing, your home’s dollar value is an important number to know.
A Comparative Market Analysis (CMA) is a tool that can help you determine the estimated value of your property by comparing “apples to apples”. Since market value is determined by what a willing-and-able buyer will pay, a CMA can establish market value by comparing your home to similar properties that have recently sold in your area.
If you are a seller, a CMA can help you determine:
- Recent selling prices for homes similar to yours
- The length of time these homes were on the market before they sold, and the length of time it will likely take for your home to sell
- The homes you would be “competing with” should you decide to put your home on the market right away
If you are a buyer, a CMA can help you determine:
- What to offer on a property you want to buy
- If you are refinancing, it will give you some indication of what to expect when you have your home formally appraised
To get a complete picture of your local real estate market, have a real estate professional bring you up to speed with a CMA. The Dave Roach Team provides a no-obligation CMA at the request of anyone who wants to know what their home is currently worth. The data in our CMA report include:
- Currently available comparable listings – If you are selling your home, this is your “competition”. Remember that how you price your home relative to the competition is critical to your success. It’s also a good idea to visit open houses in your area to see how your home compares aesthetically.
- Pending sales – Although the actual sales price might not be made public until after the pending sale closes, analyzing pending sales can help you determine a list price range that is most likely to generate an offer.
- Sales that occurred within the last six months – These sales represent the most recent sales activity and will serve as “benchmarks” for the price of your home. We will analyze these sales to determine current market conditions, but if the market is changing rapidly, we might shorten the time frame to three or four months. For each listing in your CMA, we might find out how long it took to find a buyer for the home, if there were multiple offers, how long the listing took to sell, and if the sellers had to lower their price to attract a buyer.
- Expired listings – These are listings that did not sell during the listing period and usually indicate the market’s “high water” mark. If a home doesn’t sell during a listing period, it’s likely that it was priced too high for the market. Analyzing this data will help you avoid the dangers of overpricing your home hence opening the door for low-ball offers.
Contact the Dave Roach Team for a free home evaluation to find out the value of your home.