The big question that arises when you decide to sell your home is usually, “What price should I list it at?” You may have your ideal home price in mind or you may have seen estimates floating around while you were doing some online searching. However, the best option out there for you is to pursue a comparative market analysis, often referred to as a CMA. 

A CMA is a tool that helps real estate agents determine what the asking price of your home should be. It is an analysis that takes into account recent homes sold in areas similar to yours and compares them based on several factors, including size, location, condition, and amenities. A real estate agent will be able to provide you with this analysis and help you get started on your home selling journey. To provide you with additional insight, we’ve pulled together 4 ways that a CMA can benefit you if you’re looking to sell your home. 

 

It Will Help You Understand the Value of Your Home in the Context of the Market
In a market as competitive as the one that we’re in, you may think that you can list your home for just about any price and it will sell. However, it is still crucial to be knowledgeable about the market and what you’re up against when you go to sell. Pricing your home too high can lead to expired listings and minimal offers, even in a strong seller’s market like the one we’re currently in. A CMA helps in this regard as it will let you know the listing prices you’re competing against and can help prevent you from pricing outside of the market. This analysis will help you understand what the current conditions at play are, including median listing prices of comparable homes, average days on market, months of inventory, and average price per square foot - all great indicators to help you determine the right price to list at. Additionally, this knowledge will allow you and your agent to be able to respond to any offers you receive appropriately, ensuring that you get the most for your home.

 

It Will Help You Control The Speed of Your Home Sale
After reviewing the CMA, your real estate agent will provide you with their recommended upper and lower price limits for the listing price. This estimate will be based on the data the CMA provided, including what similar homes have sold for. At that point, you can decide where you want to price your home on the scale. Here at Chinatti, we like to look at three different pricing strategies - event pricing, market value, and aspirational pricing. Event pricing will be an appealing price, maybe even slightly lower than market value. This pricing strategy will draw in the most buyers, putting you in a position to receive multiple offers and most likely get more for your home than you might if you priced at market value. On the other end of the spectrum, aspirational pricing is typically above market value, and may not attract as many buyers right off the bat. Instead, you might face a longer period on the market with fewer, but more serious offers. Keep in mind, however, that pricing your home too high may lead to trouble when it comes time for an appraisal.

 

It Will Put Your Agent to The Test
Selling your home is a huge decision and, understandably, you probably want to compare your options. Interviewing several agents and comparing their CMAs is a great way to find the right agent for the job. A CMA is a fantastic way for your agent to demonstrate their dedication to selling your home and their general skill/market knowledge. A well done CMA will be thorough and leave no details out. Additionally, they should be able to answer any and all questions about your home sale so that you feel 100% confident at the end of your conversation. 

 

It WIll Bridge the Gap Between Online Estimates and the Appraised Value
One of the major benefits of pursuing a CMA is that it can be used to bridge the gap between an official appraisal value and an online home estimate tool, such as what is offered on sites like Zillow. A CMA is likely to be close to an appraised value and will allow you to get an accurate look at the market value of your home without the cost of an appraisal. Additionally, a CMA is more accurate than online estimate tools as it takes into consideration factors such as renovations and the most up-to-date market conditions. By pursuing a CMA, you can get a true understanding of what would be considered a fair price for your home and have confidence when the time does come for a home appraisal. 

 

Bottom Line
If you’re considering selling your home, a CMA is a great place to start! Reviewing CMAs from various agents will not only help you understand the value of your home but will allow you to identify the agent that is right to sell your home. Additionally, it will ensure that your home sale is set up for success and will get the most traction with the current market conditions. If you’re thinking about selling your home and would like to request a CMA, give us a call! We’d be happy to deliver that information and set your home sale up for success!