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Fair Home Value: Did Your Realtor Forget Something? |
As you prepare to sell your home, get an idea of your home value and start interviewing real estate agents to list with, you will find that agents will introduce you to a priceless document in real estate transactions: the comparative market analysis, or CMA. A CMA is a document that shows you in black and white where your home stands compared to it's competition. It covers facts that can be qualified and quantified, such as your home value, the home value of houses in your area with similar features, how many homes sold in your area, etc. The CMA is designed to give an overview of all the information you need on your home and to estimate a home value, such as the number rooms, bedrooms and baths, types of amenities, age of home, property taxes, etc.
In a way, a CMA is like a resume for your agent. The more in depth the info, the better it's presented, the more likely the agent that made it for you is going to be on top of matters when it comes to selling your home. Your CMA and home value is a starting point in the sale of your home. It does not offer details that are more a matter of opinion like the kind of details that will affect a perception of a home, like interior and exterior decor, the window view, the room flow, etc. Much of your home value is based on the emotional impact your home has on interested buyers. Your home value may be a million dollars, but if it doesn't interest or inspire a buyer, then your home certainly won't sell for that price.
Although a CMA can't effectively promote the the emotion or perception a home may give, it does present the facts as to where your home value stands compared to others on the market. The typical CMA will always include the real estate agent's contact information (likely several times throughout the report, if not on a header or footer of every page). An introductory letter will introduce the agent, thank the homeowner for the opportunity to worth with them and give a basic explanation as to what will be included in the CMA, explain how the information is necessary to estimate a home value and indicate an appropriate price range for the homeowner's property in today's market.
The next few pages of the comparative market analysis will show listings of several properties that have similar features as the one that is the subject of the CMA. It may show current homes for sale, properties with expired listings and properties already sold along with their home value. The details on the properties should include the address of the property, the basic information of features (number bedrooms, baths, square footage, etc). It will also include the average home value per square foot and a list of interior features.
These listings are followed by maps, charts and graphs explaining and comparing the information, including average home value and price per square foot and then ending with a summary analysis of the data presented. The rest of the CMA will usually include a leaflet as to why a homeowner would need a real estate agent to sell their home, the agent's opinion on the home value of the property and a reasonable price range for putting the home on the market. They may also include details of how exactly they would market the home once it is listed.
That is the basics of a comparative market analysis. Some agents may include fact sheets of advice for home sellers, giving them as much information as possible to understand the transaction they are undertaking. Having an agent come up with a basic CMA for you is a great way when screening agents, since a CMA is so much more than just getting a home value. The CMA is the meat and potatoes of where your home stands compared to others for sale and is the best way to sell your house for as close to your actual home value as possible. If an agent hasn't provided the above things in a CMA done just for you, it may be time to shop around a bit more.
About AuthorFind out your own home value and other valuable homeowner information at GetMyHomesValue.com
Ashley Lichty is a webmaster and the resident SEO of Web Xtreme, Inc. She has a background in real estate and marketing with an emphasis in writing.
Source: ArticleTrader.com
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