If you’re thinking of selling your home, one crucial element is ensuring your home is accurately priced. That’s why many sellers have their real estate agent provide them with a Comparative Market Analysis (CMA). Read on to learn about the benefits of a CMA and how it’s different from an appraisal.
An Appraisal vs. a Comparative Market Analysis
A licensed appraiser conducts an appraisal on behalf of the bank whereas a CMA is conducted by a real estate agent. When a home buyer applies for a loan to purchase your property, the bank orders an appraisal. Both appraisers and agents use research-based comparison methods, but bank appraisers do not have a vested interest in the sale of the home. The appraiser determines your home’s fair market value to ensure the bank is not lending more money than needed.
For a CMA, an agent uses their knowledge of the local market and the data available to them on the Multiple Listing Service (MLS), regarding sold homes and market trends. A Comparative Market Analysis helps price the home more accurately, keeping the property competitive in the current market.
Know Where Your Property Stands in Your Local Market
A CMA compares your home to other local homes in your area that have been on the market in the past three to six months. Comparable homes share some of the same characteristics as yours such as condition, square footage, and property size. If you have a good real estate agent, you’ll receive a thorough CMA so that you know:
- What local homes are selling for
- How long homes in your area were on the market
- The delta between their listing and sold price
- A low, median, and high selling price for your property
All of this data will be factored when pricing your home. The last thing you want is for your home to sit on the market because it wasn’t correctly priced due to how it compares to other homes in your area, and/or in light of your current local real estate market. To learn more about our current real estate market here in Kitsap County, Washington, check out our latest quarterly market update below.
Manage Expectations & Make Informed Decisions
While there are many great real estate stories about multiple offer situations and all-cash offers, it’s important to start the selling process with the information you need. It will allow you to manage your expectations and to know what you may need to do in order to improve your property’s potential price. And, if you realize you want to invest a bit more in your home in order to sell it for more, you may want to consider the Windermere Ready Program, which can provide you with a loan to invest in home improvement costs before selling. There’s so much to be aware of when selling a house, and a Comparative Market Analysis can be a great place to start. If you have any questions about selling or a CMA, feel free to contact one of our local real estate agents.