Home Sellers » CMA

Comparative Market Analysis

"How much is my home worth" is the question real estate agents are most often asked. The majority of times the homeowner is seeking an opinion of value, which is unlike an appraisal that may be requested by a lender, in preparation of putting their home on the market. Other times it may be that they are considering refinancing or a home equity loan and are curious to how much equity they may have.

Whatever the reason, the local real estate agent is the best source to assist you in determining the fair market value of your home. With personal access to the local MLS (Multiple Listing Service) systems, current data on homes sold is readily available to most real estate agents to help in forming an "opinion of value".

The typical market analysis will contain comparable sales data (home size, style and proximity) from the neighborhood or area in which the subject home resides. Then I, as your agent, will look for the most recent sales. This is important; make sure any market analysis presented to you to help determine the value of your home contains "sold" data. What your neighbor's home has been listed for does not mean anything. If there are no recent sales within your neighborhood, then I will look further out from your area until comparable sales data is found. However, sales even on the next street could be significantly different from yours, especially, in mixed use zones.

Once I have found at least 3 comparable homes that have sold recently and match your homes style, age and size, I will compare the similar features. Here is where the any agent's experience and knowledge is invaluable. What makes one home more valuable than another can be traced to condition, staging (decorating), concessions offered and many other details that requires a professional's touch to tell a difference, a "human" touch.

Before presenting these findings to the seller, there a couple more things to consider. First, if current area has pending sales at this time. This shows homes that are currently under contract, but have not yet closed. Since these properties have not closed, their market value has not become public knowledge. However, these properties are a good indicator of the value of the current market and the list prices that are attracting "real buyers".

Failed to sell. These are properties that have been withdrawn from the market or have expired listing periods. Understanding why these properties did not sell can help any agent to avoid disappointment in the marketing of your property. The listed price of these homes may suggest prices that are higher than buyers are willing to pay.

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