How do YOU and your REALTOR go about DETERMINING the LIST PRICE?
What the heck is a CMA?
There are MANY dynamics that come into play when your Realtor is researching all the information to assist you in determining the correct price to list your home at. Here is a breakdown of a few key items you and your Realtor must be aware of.
$-Price per Square footage of Relevant Properties - Currently Listed At
$-Price per Square footage of Relevant Properties - Recently Sold At
$-Price per Square footage of Relevant Properties – Cancelled or Expired Homes
$-Current Market Conditions
$-Condition of Your Home’s Interior
$-Condition of Your Home’s Exterior
$-Number of Garage Stalls
$-Features of Your Home compared to Features of Relevant Properties
$-Is your Home the Largest or the Smallest in your Neighborhood?
$-Current Tax Valuation on your Home
$-Current Mortgage/Mortgages on you Home
$-Your Enthusiasm and Motivation to Sell
First, your Realtor should preview your home to get a personal look at the location, condition, and features.
Next, your Realtor will look at comparable homes in your neighborhood on your region’s Multiple Listing Service (MLS) in these three categories: 1. Current homes for sale. 2. Recently sold homes. 3. Homes that expired or cancelled because they did not sell.
Then, your Realtor determines which homes are “relevant” to your home through criteria such as finished square footage, style of home, the year a home was built, number of bedrooms and bathrooms, garage spaces, and features that your home and others have to offer.
Once this information is researched and put together, your Realtor has a jump start on your COMPARATIVE MARKET ANALYSIS. (CMA)
Understanding Your Comparative Market Analysis: (CMA)
Your Realtor may send you the CMA via e-mail or may present it to you personally. Either way, the following will give you a short explanation of each of the sections that may be included.
“Current Homes for Sale:”
This section of yourCMAwill show what other sellers are hoping to get for their properties. When preparing to list, you will want to look at each of these homes carefully to determine the similarities and differences to decide which properties are relevant to yours.
Twin Cities Specialists Realtors will actually, personally, go preview the relevant homes on the market and share with you what sets yourhome apart from theirs and what sets their home apart from yours. This personal service provides a more accurate experience in setting the optimum sale price to assure your home’s competitiveness in the current market.
“Houses that Did Not Sell:”
This section gives you better insight as to what buyers in the market are not willing to pay for a house with amenities and features similar to your home. Pricing your home in the price range of the “Houses that Did Not Sell” section may not be in your favor if you are truly motivated to sell your home and in a short period of time.
“Houses that Sold”
This category shows you not only exactly what buyers are willing to pay to purchase a home in your neighborhood that is relevant to yours, but also what an expected appraised value may come back at.
A CMA completed by your real estate professional empowers you with useful information to assist you in pricing your listing, but ultimately, the pricing of a house is entirely up to you, the seller. Your real estate professional should also help you to understand that motivated sellers must be prepared to price the property accordingly, to achieve a successful sale in the shortest time possible and with the most favorable terms.
Author:Lisa Handley Phone: 612-390-6520 Dated: December 29th 2014 Views: 693 About Lisa: TEAM LEADER & Sales Manager for TC Specialists is LISA HANDLEY - 612-390-6520. Lisa is a native of M...
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Twin Cities Specialists is part of the Re/Max Advantage Plus team, where together we are stronger in achieving our clients’ goals. What sets us apart is our use of technology, our personal and professional service, and our desire to be the best at what we do as your community expert. In fact, we will help you find a community expert in your area, if we don't have one for you, just ask. TEAM LEADER & Sales Manager for TC Specialists is LISA HANDLEY - 612-390-6520. Lisa is a native of McIntosh, Minnesota, moved "south" with her family, to where it is "warmer" and, as an empty-nester, pursued her long-time goal of becoming a top real estate agent. Lisa is a person who cares about people and will do what it takes to see others achieve their goals. Ultimately, this is what prompted her to start her own team. The Twin Cities Specialists consists of service-oriented agents and other industry professionals that will do and be the best for our clients through the entire buying and selling process. TC Specialists will be there for our clients from the very early stages of planning, pre-approvals, showings, staging, photography, negotiations, and all the way through the closings. Our mission is to treat our clients the way we would want our own families to be treated, with kindness, respect and service that goes above and beyond.