SELLING PROPERTY: How a CMA Helps A Seller
In our modern online world Sellers and Buyers of real estate have far more access to comparative prices, reviews and Information when trying to sell something.
For those wishing to hunt for motor cars there are a myriad of sites where you can get a treaty good idea of the going rates and prices for used motor cars or even motorbikes. For the likes of electronic goods there are loads of auction type site (Bid or Buy, EBay etc) which list what various items go for and are offered at.
Houses aren't quite the same because what most people (and most particularly Sellers) see is "Listing Price", a very different animal to Selling Price unfortunately!
That's why it's advisable for Property Sellers to get an accurate (and detailed) Comparative Market Analysis, (referred to as a "CMA") from an established local estate agent who specializes in the suburb, estate, complex or area.
Here's just a couple of ways that a well prepared CMA can assist you.
RECENT PRICE TRENDS
The primary advantage and benefit is that a good CMA will show you RECENT price trends. A well-researched CMA will detail houses or units that have sold in the recent past in the homes immediate area.
A CMA will give you the dates the sales or property transfers took place and will help you establish which way current price trends are going and whether the local market is in the rise, falling or static.
AN IDEA OF VALUE PER SQUARE METRE
Since the relevant properties used in the CMA will most often have their square metreage included, prospective home sellers can determine reasonably accurately how much their property is worth based on the square metres of the homes dwelling and outbuildings.
ADD ON VALUE
Many Sellers estimate in their own minds that a particular feature or features of their property will attract more value than the market will actually bear.
As an example, the likes of high end wooden floors, customIsed painting, Jacuzzis and top of the line bathroom fittings and tiles may be quite steep when bought but the overall influence on the price of the property is rarely as high as what was invested. Areas that improve usable square metreage, security and lighting, pools and wooden decks decks or entertainment areas do tend to bring more to the party when it comes to improving the price of a property.
DAYS ON MARKET
A detailed CMA indicates when a unit or house was initially listed for sale and when it actually sold.
This enables the Seller to make an educated estimate on how long it will take to get offers on the home as well as a realistic expectation of how long it takes for their property to actually sell.
HIGHLIGHTS FAILED TO SELL OR EXTENDED SALE TIMES
Your Agent will also include some of the properties that failed to sell, were withdrawn or simply expired, not just those which have sold.
The advantage of having this information is that it will help you tremendously when it comes to making the call on the price you are going to be marketing your home at.
A comprehensive and well researched CMA will give you the most solid source of real and relevant local information to make the decision of what to price your home at, how this compares to what your own expectations are, and a good idea of the amount of time that will be needed to turn your property from being 'on the market’ to one which is sold.
Don't settle for less, get your Agent to prepare and present a CMA to you before you make the final decision.
Author: Chas Everitt