Making Sense of a CMA - Competitive Market Analysis

Here are some things I would recommend looking at when looking at active, expired, pending and sold listings on your CMA.

*What is the average List price in your neighborhood on active homes

*What is the average Sale price in your neighborhood on sold homes

*You’ll notice that Sale Price is more than likely only 3-4% lower than FINAL List Price on the Sold properties

*What is the average number of days on the market?

*What is the original list price of the fasted selling properties? You’ll probably notice the sold homes that were originally priced too high, eventually lowered their price, still sold for market value, but the time on the market was longer.

*Look at Expired listings and Do Not Follow their lead on price! These houses did not sell!

*What is the price per square foot on the Sold properties?  This helps when homes are not very similar in a neighborhood. The highest dollar per square foot price will be the houses with major updates like kitchens, baths and roofs. These homes also have the most amenities.

*How does yours compare in terms of size, upkeep and amenities? Obviously, the lowest square footage price will be the homes that are the least updated, but most homes will fall somewhere in the middle.

*The key here is to price it just below the bucket where it objectively fits. Information on the updated features is usually in the marketing remarks of the MLS listing provided by your agent.

*Pricing your home on an even number price point helps your home come up in more searches.  Let’s assume your Correct Market Value is 175,000.

        *If you price your home at 174,900 you would come up in a search from 150,000-175,000.           

         *However, you would not be in a list of homes from 175,000-200,000. Set your price on the even dollar,          in this case right at 175,000.

If a home is overpriced, buyers may not even see your home. Let’s use the scenario above and assume a buyer is looking for homes up to 175,000. If you’ve priced your home above the market at 185,000, that buyer would not even see your home because it will not come up in their search for homes up to 175,000.

If you would like a CMA on your home, you can request one here, or go to www.LaurieHomeSales.com

PRICING YOUR HOME TO SELL

The market price of a home is clearly what a buyer is willing to pay for it. 

Now I’m not here to paint an ugly picture, I am here to give it to you straight. Setting the price right is the single biggest factor in getting the most for your house in the shortest amount of time. 

I know what you are thinking. If I list it too low, I won’t have room to negotiate. Let me help! If your home is overpriced in this market, it will be impossible to sell until it is priced for the current market. Yes, I said Impossible! Buyers will not even come to look at your house. The buyers are the experts on the market. They know the competition well. 

Neighborhood price comparisons are the only way to set the right listing price. If a home is reasonably priced and market-ready it still sells pretty quickly and usually within 3-5% of asking price. 

The first step in pricing it right - Get a CMA from a Qualified Agent– A Competitive Market Analysis, keyword being “Competitive”! It is a summary of homes that are active, expired, pending and sold in your market. 

Some facts about a CMA -

This is a report of ONLY your neighborhood.

Information is no older than 6 months.

Things to look at on your CMA

Active properties - These are your competition, go in a couple of them when they have their open houses.  Look through their pictures online.

Þ   Compare objectively, where your property is better, worse, bigger, smaller, more or less updated. So you have an idea of what the buyers will have to choose from. This information will go a long way in pricing your home to be COMPETETIVE. 

Þ You do not want to be the most expensive home in the neighborhood 

Most importantly, take a look at the SOLD homes. These are true to life numbers of what homes in your neighborhood will sell for. 

My next post will be about How To interpret a CMA

For more seller tips go to www.LaurieHomeSales.com

Seller, What's a Buyer's Market when you're moving up?

BUYER’S MARKET DEFINED

Þ    A Surplus inventory of homes on the market

Þ   More Sellers than Buyers

Þ    Low/No appreciation levels

Þ    Motivated Sellers as your competition

Þ  Sellers offering incentives

Þ   More than 6 months of supply on hand, based on the number of homes sold per month (Many markets have 9-12 Months Supply)

Let’s think about this. If you are moving up, A Buyer’s Market or a Seller’s market, does it matter? 

If you want to sell your home to buy another home, the Buyers market, or Seller’s market, for that matter is less relevant to the big picture than you might think. 

Any dollars that you may give up on the sale of your home, you are very likely to make up when you buy. It washes out, so pricing it right in the first place is a win-win situation for you.

In this Buyer’s Market, who demands a bargain?

 1.     Buyers for your house

2.     You, when you move

Just some food for thought! 

       Priced at only $109,900!

Updated raised Ranch home in Kettering. Walking distance to schools, Kettering Rec Center and The Greene. This home has 2 full baths and 3 bedrooms plus a bonus room that could be used for a 4th bedroom or a Study. The lower level is completely finished. Furnace and C/A 2006, newer roof, newer carpet, Updated Kitchen, built in speakers. 1 car extra deep garage. Owner looking for an offer!

Contact me now for your private showing.

Search more listings at http://lauriehomesales.com/browselisting.aspx

High Visibility Storefront Available for $85,000

Storefront, retail space, warehouse space available in a great location!

On the corner of Wilmington Pike and Shroyer Rd.

Lots of frontage and great traffic counts.

Building is 1452 Square Feet per county records, also has about 1000 square feet in the basement.

Parking lot.

Leasing is also available.

Belmont -3 Bedroom w/Garage and Basement for $695 per Month

Nicely updated 3 bedroom, 1-1/2 bath home with garage.

The kitchen and bath are newly tiled and many of the windows are new.

Freshly painted and available immediately. There is also a huge attic for storage. Credit check. No dogs/cats

.         

Huber Heights - Nicely updated and Priced to Sell

$79,000

Charming and well kept 3 bedroom home with lots of updates.

This home has a very spacious living room!

The eat-in kitchen and the bathroom have new tile flooring.

The master bedroom is extra large with a lot of closet space.

*Roof was replace in 2010.

*Newer windows and water heater!

*All appliances stay.. Even the Washer and Dryer!

*Fully fenced in yard, a storage room and a great deck!

The garage has a built-in workbench and overhead storage.

This home is move-in ready, priced to sell and is waiting for a new owner!

Beavercreek Schools - 3 Bedroom for under $60,000

BEAVERCREEK SCHOOLS! HUGE PRICE REDUCTION!

Very spacious and well-kept home with 1325 Square Feet. (GREAT VALUE - Priced at only $45 per sq. foot!!)

This home has many updates besides new carpet and fresh paint thoughout. The huge eat-in kitchen has new flooring and the refrigerator and range stay!

There is a wonderful 20' x 17' Family Room addition that is open to the covered patio!

Outside you will find a nicely landscaped yard with 2 sheds!

New Carport,  fixtures, lighting, Siding and the Heating and Air in the Family Room and more!

This is a great home ready for a new owner. Come take a look, you won't be disappointed.

NEWER HOME AVAILABLE FOR RENT IN KETTERING

$1975 per Month!!! 

Spectacular 5 Bedroom/4 Bath home! Only 3 Years Old!

Two-story entry w/an open staircase and beautiful hardwood floors through the entry way, hall, dining area, kitchen and morning room.

The Great room is 26' x 25'

Beyond the kitchen is a 10'x 18' Morning Room w/access to the oversized deck.

Upstairs you will find 4 ample sized bedrooms. The Owners Suite has a sitting area, walk-in closet and owners bath w/ a spa tub & separate shower.

In the Finished basement is the 5th bedroom with Egress, an office space, a huge rec room and the 3rd full bath.

Other features -whole house speakers on all 3 floors with multiple sources, central vacuum, an extra large water heater, oversized deck and 2 storage areas in the basement. This home is approx. 3800 Square Feet including the basement w/egress! Amazing home! Come take a LOOK!

This home is also for SALE for $269,000

Beautiful Newer Home in Kettering

$269,000

Spectacular 5 Bedroom/4 Bath home! Only 3 Years Old!

Two-story entry w/an open staircase and beautiful hardwood floors through the entry way, hall, dining area, kitchen and morning room.

The Great room is 26' x 25'

Beyond the kitchen is a 10'x 18' Morning Room w/access to the oversized deck.

Upstairs you will find 4 ample sized bedrooms. The Owners Suite has a sitting area, walk-in closet and owners bath w/ a spa tub & separate shower.

In the Finished basement is the 5th bedroom with Egress, an office space, a huge rec room and the 3rd full bath.

Other features -whole house speakers on all 3 floors with multiple sources, central vacuum, an extra large water heater, oversized deck and 2 storage areas in the basement. This home is approx. 3800 Square Feet including the basement w/egress! Amazing home! Come take a LOOK!