Free Market Analysis CMA
One of the best ways to determine a price for you home that is utilized by Realtors is to complete a Comparative Market Analysis or CMA. There’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area. A more in-depth approach is to have a Licensed Residential Appraiser complete an Appraisal report.
Here are five criteria to look for in a sales comparison.
- Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood, typically in a one mile radius, is a good start, but comparing it to homes on the same street or block is even better.
- Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available. Typically, the comparables that have sold within the last 6 months to a year reflect what is happening in your market.
- Style of the Home: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.
- Amenities and Improvements: Remodeled bathrooms and kitchens can raise a home’s price, and so can upgrades like a new roof or HVAC system. A home with a garage and basement tends to sell for more than ones that don’t have those amenities.
- Sale types: Homes that are sold as short sales or foreclosures are considered distressed sales and most often are sold at a lower price than would have been obtained from a more typical sale. These homes are not as useful for comparisons.
Call us for a free consultation to discuss what your home is worth. Joann Perna is a licensed Appraiser as well as a Real estate broker can is an expert in determining property values.