You don’t have to be a rocket scientist to figure out a home valuation or get one; almost every Realtor has “Free Home Valuations” all over their messages, all you have to do and they will gladly prance and parade to your residence for the primary purpose of hoping that you will sell your home with them. In my experience, 50% of these valuations are spot on, the rest, well, telling people what they want to hear or afraid to upset a potential seller or gathering all the glamour B.S. and dumping it on you trying to impress you with style is not helping you!
My interpretation of a CMA is the following:
A Comparative Market Analysis (CMA) helps determine a property’s correct selling price. Ultimately, the best possible price the market will bear is the correct selling price.
A market analysis is divided into three categories:
1. Comparable homes that are currently for sale
2. Comparable homes that were recently sold
3. Comparable homes that failed to sell
Looking at similar homes currently offered for sale; you can assess the alternatives a serious buyer has from which to choose. You can also be sure that we are not underpricing your home.
Looking at similar homes sold in the past few months, you can see a clear picture of how the market has valued homes comparable to yours. You can also see the days on the market for these to sell. Homes that sell for the correct price sell the quickest.
Banks and other lending institutions also analyze these sales to determine how much they can lend to qualified buyers.
Looking at similar homes that failed to sell or had price reductions, you can avoid pricing at a level that would not attract buyers.
In summary, free has no value; there will always be a price to pay, now or later. I don’t know who said this, but I love it: “Pay the price once and only cry once”!
