If you're
thinking about selling your home or property, a comparative market analysis or
CMA is a great way to help you determine the actual value of your home for your
home in the Phoenix Arizona area. You could conduct your own comparative market
analysis, but it's best to seek the assistance of a trained real estate
professional.
As trained Real estate professionals we have access to up-to-date
geographic-related information about:
- Active,
pending and expired real estate listings
- Comparable home sales
- Market trends including the average number of days area homes remain on the
market before they are sold
- An area's recent highest, lowest and average home sales prices
When you
enlist a real estate agent to provide you with a CMA, you are likely to get more
complete information faster. An agent will also help you to analyze the
information in a comparative market analysis. A CMA is in no way a price
guarantee. There are many factors that go into pricing a home and some of them
are very personal including a seller's motivation. Some sellers are financially
distressed, or are under pressure to relocate for employment purposes and are
willing to drop the price of a home for a quick sale. Other sellers are willing
to wait for the right buyer to purchase his or her home at a premium price.
The depth of comparative market analysis reports varies. Ask your real estate
agent to explain what you can expect to learn from the CMA he or she provides.
At the very least, a standard CMA will include:
Active listings or homes currently for sale. This will give you a snapshot of
homes your potential buyers will be viewing and comparing to yours. A seller can
list a home at any sales price, so be careful not to read too much into active
listings. In the end, a home is worth what a buyer is willing to pay.
Pending listings. A pending listing is a home under contract. This means the
sale has not yet closed. Like sold listings, pending listings can help you
determine what buyers are willing to pay for property comparable to yours.
Because pending sales are still in the legal negotiation process, this
information is often kept private.
Sold listings. Appraisers are strongly influenced by the price at which
comparable homes have sold in the same geographic area as your home. An
estimated market value will be largely based on sold listings.
Withdrawn or canceled listings. Sellers sometimes withdraw their homes from the
market and the reasons vary. A change in life circumstances, low offers, and
repairs required for buyer financing are just a few. This information can,
however, be very helpful in determining how high is too high.
Expired listings. An expired listing is one that has been on the market beyond
the length of a realtor contract. Sometimes these properties are overpriced.
Sometimes they are not marketed aggressively. Occasionally a seller will change
agents in the middle of the sales process.
It is very important to only compare properties that are similar to yours in a
comparative market analysis. In some locations, this will be hard to do.
Important comparables include:
• Square
footage
• Location
• Type and age of construction
• Amenities and upgrades
• Condition
Of all of
these factors, you have the most influence over condition and amenities and
upgrades. A thorough comparative market analysis or CMA will help you determine
whether or not repairs and upgrades will significantly increase the value of
your home. It's best to seek a CMA before spending too much money on repairs and
remodeling.
We provide a free CMA for homes in the Phoenix, Chandler, Gilbert, Maricopa,
Queen Creek, Mesa, Tempe, and Scottsdale Arizona areas.
Just go to http://www.ralphandtricia.com/MarketAnalysis.htm and fill out the
handy form today.
