What is a Comparative Market Analysis?

As a homeowner, you've probably received lots of mailings from Realtors over the years offering to give you a free Comparative Market Analysis should you be thinking about selling your home.  Maybe those terms are confusing to you and you wonder what the heck is a Comparative Market Analysis.

A Comparative Market Analysis, commonly referred to by Realtors as a CMA, is a report generated from your local Multiple Listings Service (MLS) database, that shows listing details of property similar in style and location to yours, including photos, prices, and other information that will help to determine a price range of your home.

A thorough report should include information on the comparable homes available for sale, currently pending sale, recently sold (no more than 6 months to one year back), as well as those that were listed and did not sell.  Why are the ones that did not sell important?  For one, it will show what homes were apparently not desirable to buyers for one reason or another, whether it was the condition of the home or the price at which they were listed.  It would be good to know this information so that you don't make the same mistake.

When I provide a CMA to a client, I will offer my opinion of the listing range of the home.  For me, the listing range is usually the same as the selling range, although some agents will give you a listing range and a selling range.  I personally prefer to list the home where it should sell.  If you look at it from a buyer's perspective, a buyer who comes to your home when you first list it will have seen several other homes already and will know instantly if your home offers value at the price listed.  If it does and if the buyer likes it, they will most likely make a full price or very near full price offer because of the fear that someone else will recognize the value and beat them to it.

Feel free to call me at 502-435-5524 if you would like me to give you a Comparative Market Analysis of your home with no obligation on your part.  I can also be reached by email at Pam@MovingWithPam.com.

If you would like to perform your own search for homes in the Louisville, KY area, you can go to my search site at www.FindHomesInLouisville.com and search for free.