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