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How does a realtor determine the price of my home in Bellingham WA?
A CMA or Comparable Market Analysis helps you and your Realtor come to an agreement on what price your home should sell for. Naturally markets change as we saw from 2006 to 2009. How do we keep abreast on how much a home is worth? Your Realtor should have some concept on how an appraisal works. We use comparables, hence the name, or inventory sold to look at what has sold in the past 6 months. This is because on average the market does not change in terms of appreciation very much except for seasonally adjusted prices. From there we do what appraisers do, we look at how your house compares to the others sold. In theory, if we had a perfect match then we would know at what price to sell your house. However, there are likely to be differences. These differences we have to adjust for. We adjust the comparable or non subject property to find out the value of the subject or property to be sold. If the comparable has 1 more bedroom, then we know that house is worth more, so we adjust the price sold on the comparable downwards to be adjusted to our subject property. ... more
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