The Comparative Market Analysis Breakdown:
Your home is your home true, but as you phase into the process of knowing you are going to sell your home, a vital step is to be able to put on your ‘what is this home worth to others’ glasses and knowing distort your personal opinions for a little bit.
--------------MAIN PURPOSE OF A CMA
After getting the general idea of what your home is worth, meet up with a handful of Realtors and look at their CMA that they will prepare for you. This is a professional and in-depth look at other homes sold that are similar to yours in location, size and quality. This draws from the database Realtors use to access all the listings in an area so it will have more data points then what you can do by just assessing your neighborhood. The primary purpose of a CMA is to get a realistic read on what value your home is worth from the facts and figures of prior sold units. It goes beyond just judging how your home with fare against other competition, but will also protect against appraisal issues in the future.
--------------A SNAP SHOT
A CMA should include a snap shot image of each house it is being ‘comp-ed’ against. This includes # baths, # bedrooms, year built, taxes, and any upgraded features. CMA’s time frame is varied depending on the Realtor you go to (this is why I recommend going to many!). Some draw from only a few months while other may draw from many years. The wider the timeline, the less accurate the CMA as the real estate market shifts and turns making some comps from a few years ago entirely out of place when looking at the current market.
Selling your home is not exclusively about the numbers. It is an extremely personal and negotiable process. A CMA is just the beginning to a mutually beneficial relationship between client and Realtor. The price agreement is the balance between the hard data only an agent can provide you with and the client’s gut feeling. From there, the marketing plan, follow-up and attention your listing gets are all details that can only come out of this balance. If an agent is not comfortable with a price point, their marketing and the possible market rejection will make it a headache of a process and if the client is not comfortable at where it sits, the same thing will happen.