Selling Your Home? Term to Know: C.M.A.
c.m.a. = comparative market analysis
A C.M.A. is research performed to find out the prices at which similar properties in the same area recently sold, properties currently on the market & properties that recently went under contract.
Here’s what happens when someone calls us & tells us they are interested in selling their home. We start asking questions – like address, number of beds/baths, do you have parking, is your home updated, do you have any outdoor space & what is the square footage (sometimes public records is inaccurate)? Once we feel we have a clear picture in our head we start digging around in the MLS. The goal is to provide you with a hyper local snapshot of your immediate market because the reality of real estate is that location is everything. What is happening on the surrounding blocks is more important than what is happening in the whole neighborhood. Then we want to meet to go over the information & drop off some paperwork for you to review. This way we get to take a tour of the home to ensure that our work is correct & we can explain, in person, how we came to our number.
what’s on the report?
1. Most importantly are the homes that settled within the past 6 months & if there are any concesssions the seller made that aren’t reflected in the price in public records. Say a $2,500 credit to the buyer at closing to make some repairs from the inspection. Public records says the home settled for $250,000 but the actual settled price is $247,500.
2. Next in importance are the homes that are active. This is your competition. How are they priced? How do they look? How long have they been on the market? Where do we want to be priced in relation to them to get the most people through the door? Where can we be of value in comparison to them?
3. Pending homes are less important but do serve a purpose. How long were they on the market before they received an offer? When are they scheduled to close? What was the starting price? Did they take any price reductions?
We take a look at all these factors so we can come up with the proper price. Homes priced properly receive lots of traffic in the first few weeks. For a home that isn’t pre construction this is the most crucial period for showings.
Once we take a look around your home we offer suggestions on how to enhance the showing experience for future buyers. Our usual advice is to purge clutter/religious paraphernalia/personal objects like photos, do a deep clean, paint walls a light neutral color, ensure that the lock on the front door is easy to use & potentially staging. We are cautious about advising a client to make improvements, especially expensive ones, before selling. This is on a case by case basis but often the return is not even close to dollar for dollar. The general rule for an appraisal is that 95% of a homes value is derived from the surrounding settled sales. The other 5% is the condition.
Feel free to reach out to Jordan Brody & Co. today for a Comparative Market Analysis & seller consultation.