What are Atlanta Real Estate Buyers’ comparables and how do you use them?
Just like when Tim Francis Realty does a competitive market report for Sellers to show what else is Active on the market, Expired, Withdrawn, Under Contract (as Contingent, Due Diligence period, Pending) and SOLD, we do the same for Buyers.
How can buyers use a CMA? Well, the first way we use a CMA is to determine if the home listing price is even in the ballpark. Say for instance the average selling price in the neighborhood for the past twelve months is $375k, we’re concerned when we see listings that are asking $475k. That means the listing is one of the higher prices out there and quite possibly the sellers are NOT realistic about today’s Atlanta Real Estate Market. It’s not as simple as that, but it’s a guideline.
If my buyers have requested a number of homes to see and some don’t pass that flood water stage of much higher asking price to Sold, we might just take it off the list of homes to see. On the other hand, the listings that are much lower than the average CMA Sold price for the last twelve months will obviously be put at the top of the showings list.
Most all buyers want to buy at or below the neighborhood average. None of my buyers have ever requested to be the highest priced home in the neighborhood, it’s just tough on resale pricing and return on investment. This gets a bit trickier to determine, as some folks have done major renovations to their properties verses the other homes in the neighborhood. The challenge is, have the over –renovated for the neighborhood and it’s price points.
The other really big information we get from a neighborhood CMA is a snapshot of how the neighborhood is doing. Are there a ton of Expired and Withdrawn Listings that didn’t sell, as well fewer Sold homes for the past twelve months verses the long number of listings? Some neighborhoods show better pictures with fewer Expired and Withdrawn Listings, as well as a higher percentage of Sold to the number of Actives?
As you can see in the above chart, The Bluffs sells better with fewer Expired and Withdrawn listings. Interestingly, Wescott is across the street, but it’s just never done as well. The homes were built about the same time and at pretty similar price points, one just sells much better, as the overall design elements are more appealing.
Where would you rather buy? How can we help you find that next home in Atlanta?
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