In order to price homes correctly, real estate agents often conduct what’s called a comparative market analysis, also known as a CMA. This is a tool used to make sure your home is going on the market for the correct price. Here are a few things that are included in the CMA and how it can help you accurately price your home :
A CMA is used to determine the market price of your home by comparing it to other houses that are active, under contract, and were recently sold in your area. Realtors use a fact-base data analysis to differentiate your property from other homes. Most of the listings included in this CMA report are a similar size to your home and are in a similar location. Properties that have similar amenities (upgrades, number of baths, etc.) as yours and that were built within a similar timeframe are also included in this analysis.
The information in the CMA will allow you to see what these homes are actually selling for, how long they have been on the market, and what their sale price was (if they have sold) related to their list price. When you are looking at different listings on the CMA, be sure to focus more on the houses that are pending because they are the most recent. Because the market changes so quickly, it’s important to keep your pricing up to date.
The CMA is one of the many factors that goes into determining the final listing price for your home. Your agent also uses their extensive knowledge of the current market conditions, and they consider your specific goals and circumstances (like your timeframe) that might require your home to be sold more quickly or at a higher price. One factor that does not go into pricing your home is emotion. As your Realtor, I will rely strictly on the facts and your needs in order to provide the highest and most competitive listing price.
Written by Anna Linenberger, Scott Futa Home Team Intern