Do You Need a CMA? 3 Tips When Pricing Your Home
Realtors will always offer a Comparative Market Analysis (CMA) when you’re in the market to sell your home. It’s an in-depth look at your house, its local competition, recent homes that sold, and ones that didn’t. A CMA is based on facts, figures, statistics, and market analysis.
What a CMA isn’t is a Country Music Award (CMA) and it is not the same as an appraisal, which is performed by a licensed appraiser.
If you’re thinking of selling your condo, house, or multi-family home you need to consider several things along with just what the CMA report is telling you. These 3 tips will help determine the best realtor to work with and how to look at correctly pricing your property to achieve the optimal final sale price.
DO NOT Select the Realtor Based on the Highest CMA Number
If you are shopping around for a realtor, do not select the real estate broker based on whoever delivers the highest number on your CMA. It's human nature to want to get the most money possible when selling your house. It’s personal. It’s an investment. And let’s face it, it may even determine what you can afford for your next purchase. The trap people fall into is believing if the CMA says you should get $500K for your condo then that’s what it is . . . and not a penny less . . . even if the next realtor is guiding to a start price of $485K. It can be a difficult experience when you enter the market at an over the top price point and it can ultimately lead to your property lingering, becoming stagnant, and price drops. Pricing it correctly to start with will lead to stronger interest and quicker sale at the right price.
DO NOT Select Your Brother-in-Law’s College Roommate’s Wife . . . Just Because
We all know realtors. There are many of us out there. Some are new, and some have spent their entire career in the business. This isn’t the time for favors: it could cost you tens of thousands of dollars if left in the hands of someone not prepared to partner with you or familiar with the market you are in. The point is: this is one of the largest investments most people will make in their lives – you want a professional to help determine the value, market the property, conduct tours and open houses, and ensure the complete journey to a sale is the best one possible for you and your family.
DO NOT Think All CMA’s Are Created Equal
As importantly as the market data, the CMA also relies on the industry knowledge of your realtor. How intimately they know the area, what is trending at the moment, information about the town, or changes in mortgage rates and other factors can impact Buyers. This is where some of the magic comes in. Applying market experience can make the difference. Realtors who are active, full time, know the ins-and-outs of the other condos in the complex, or homes in the neighborhood can add a tremendous amount of value to the process. It’s important if they’ve actually seen the houses used in the CMA in any category to get a feel for upkeep, curb appeal and other factors that may have effected the sale price or number of days on market so it can be compared to the value of your property. These are all intangible factors that can impact your price range – good or bad – and help you price appropriately.
Managing the majority of condos in Winchester across 5 complex' and one condo complex in Medford, living in Winchester for the majority of my life, and having had my broker’s license and business for over 30 years handling not just sales but a heavy amount of house rentals -- I can bring that knowledge and unique insight to helping you with one of the biggest transactions of your life.
Contact me if you need a CMA on your property!