Whether, you are a homeowner, who decides to sell your home, or a qualified buyer, seeking to purchase, a home, of your own, it makes sense to hire, a quality, professional, real estate agent, to effectively, serve and represent you, your needs, and priorities, and personal, best interests! One of the first, essential steps, in this process, should be using, a professionally designed, relevant, realistic, well – explained, Competitive Market Analysis, or CMA, in order to guide you, towards, the smartest strategy, to use, in terms of pricing, marketing, selling, and/ or, buying, and proceeding, in a well – focused, aware manner. With, that in mind, this article will attempt to, briefly, consider, examine, and review, 5 things, this document, must fully consider.
1. Recent/ last 6 months: Historically, we used to suggest, using, only houses, sold, in the last year, to create this! More recently, that term, was reduced to, no more than the past 6 months. Many believe, these days, where home prices, appear to be rising, at, or near, record rates, we should look, to an, even, shorter – period! It’s not, truly, relevant, in most cases, what one, bought the house, for, and/ or, the cost of the improvements, the homeowner, put in, since he owned, it! Rather, it’s more about, how a specific house, compares to the competition!
2. Quality comparisons/ features: Don’t compare, apples, to oranges! Use properties, which are, as similar as possibility, in all relevant areas, including location, size of house, size of property, real estate taxes, upgrades, features, and curb appeal!
3. Similar areas/ neighborhood: Most of us, have heard, All real estate is local, and, while, many aspects of that are true, perhaps, the key is, pricing is, often, directly related, to the specific area, and/ or, neighborhood, and what it offers, including school systems, real estate taxes, conveniences, crime rate, etc!
4. Not only, what sold, but, what didn’t: A thorough, meaningful, professionally designed, Competitive Market Analysis, must, include, what sold, in the target period, as well as what did not, or took, more days, on the marker, to sell! What was the relationship, between pricing, and days – on – market? Which listings, expired, without selling, and what are the probable reasons? What percentage sold, versus failed – to, and what type of real estate market, is it, at – present (sellers, buyers, or neutral)?
5. Relationship between listing price, and selling price: It’s often said, the real estate market, will find, the selling price, and listing price, is simply a tool, and/ or, starting point! In the existing market, how long is it taking, and how close, to listing price, does the house, sell for? All these factors, should be considered, as part of preparing this valuable document, for clients!
Smart clients, and better agents, effectively create, and use, Competitive Market Analyses, to achieve the finest results! The more, everyone, understands, uses, and respects this process, the better the transaction period, might be!