So you’re thinking about selling but wondering how much you’ll be able to sell for. Licensed real estate agents have the ability and training to perform what’s called a ‘Comparative Market Analysis’ (or CMA). A CMA is compiled using a listing of currently Active, Sold, Rented and other properties whose square footage, location, home style, and other attributes closely match those of your home. Here are the steps I use to compile the CMA for your home:
- The Subject Property – The more I know about your home ahead of time, the better. Knowing what makes your home unique, or alike with other homes helps me match it up for comparison. This is why I prefer to do a “Mini Walkthrough” before each CMA I compile. All I need is 15 minutes of your time so I can capture all the required details of your home, such as upgrades, finishings, and more.
- The Comparables – The system used to find the comparables to your home has many attributes. I know the methods to use to find comparables to your property that most closely match it. It’s about thinking outside of the box and comparing your property based on more than just square footage. More to come on that.
- The Adjustments – Too many comparables can throw off the eventual math used to determine the suggested list price of your home. That’s why I like to narrow it down to the 3-6 properties which require the least adjustment to bring into alignment with your home. Adjustments are made on many attributes including square footage, number of bedrooms, bathroom, garages, basement development… the list goes on!
- The Math – It’s the law of averages, and there are no real tricks here. The suggested price is usually the average of the comparables, but what’s more important is the range. Listing your home within range is ideal.
- The Subjective Method – The simple way to do the pricing is to rely on The Math, as per above. I BELIEVE THERE IS A LOT MORE TO IT. And I’m sure every homeowner agrees. Although the system is good, it’s not perfect. There are things in your home that can increase its value, that aren’t accounted for. Things like cleanliness, overall esthetic appeal, demographic that the home appeals to, upgrades and finishings, how well it shows, and more can increase or decrease the value of your home as compared to the other properties. This is what I refer to as the “Subjective Method”. It’s where we discuss, compare, analyze together to make sure the list price we go with does your home justice.
- Final Outcome – The suggested final price is likely to generate enough activity to get your home sold in a reasonable time frame. However, some sellers have a deadline, while others want to maximize how much they get for their home and are less concerned with selling quickly. After considering your timeframes, we will agree on a list price and get your home listed!