It’s an exciting day. You have decided to sell your home and have talked with the person who will be your Realtor. Before you can even begin to ask how your Realtor is going to market your home and attract buyers you ask, “How much?”
It’s a good question and one that should be addressed early so let’s go ahead and talk about it now. The first how much is the price of the house. To help with this the Carson Paris Team includes a certified Pricing Strategy Advisor who will use all the information you have given your agent to compare your home with other homes similar to it that have recently sold in the area.
This Comparison (the C in CMA) of the Market is then Analyzed to find at what price your home would have been most competitive with the other recently sold homes and had an equally likely chance of being purchased. This often given as a range because there are always things that can’t be predicted.
The first thing a CMA is not is an Appraisal. The CMA does not tell you the value of your home. Frequently in the process of selling your home, the buyer’s lender will ask for an appraisal to set the maximum for how much they will lend to the borrower. The process for an Appraisal is similar to the CMA and you can expect the two to return similar numbers.
The second thing a CMA is not is a guarantee of the sales price. The Market Value for a home is based on statistical models that show how many of the potential buyers in a given market will consider your house. If the CMA is exactly right, then you can expect half of the available buyers to consider the house. Price it lower and you get more or higher and you get fewer. There is always a chance that an expensive house can sell, or a cheap house will not, but the odds are stack against it.
The last thing a CMA is not is your Realtor telling you what price to sell your house. You are selling your home and your Realtor is there to support you in the process. The CMA is to inform you of the market and how your home compares to the market. But, when it comes time to sell your home you choose the price your willing to accept and the price your willing to advertise. All we as Realtors ask is that you consider that what price you ask will need to be paid by a buyer and then the loan amount set by the appraiser. Sometimes it costs more to leave a home on the market than you will get from listing it above market value.