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Comparative, Competitive or Comparable Market Analysis...The CMA and Your Home

By
Real Estate Agent with Real Estate Marketplace - Louisville KY

Comparative, Competitive or Comparable Market Analysis...What Does It Mean For You?

house value balanceThe most valuable counsel you'll receive to advance you toward the goal of selling your home is a thorough, competent assessment of your home's value. The attention paid to this piece of the home selling process will set the tone for the rest of the listing period. Accurately priced homes are experiencing shorter times on the market while overpriced properties are being passed over time and time again.

If you've spoken to a REALTOR in Louisville KY regarding the future sale of your home, you've likely been offered a free Comparative Market Analysis (CMA) to assist in your process. Sometimes referred to as a Competitive Market Analysis or Comparable Market Analysis, the CMA is used to determine the Fair Market Value of your home under the current market conditions.

The process involves taking homes comparable in size, location, age & construction and adjusting the characteristics of each home to match those of your home, the ‘subject'. Comparable homes should be restricted to those recently sold, typically within the past six months, as well as pending sales and active listings. This will present you with the Fair Market Value of your home based on the "bones" of your home.

for sale homeI typically conduct two CMA's for the subject home...the first based on Sold, Pending & Active comparable properties...and the second based on Sold properties only. Comparison of the two allows me to establish the trends in the micro-market of your particular area of Louisville...to identify whether home values are increasing, declining or staying flat. From this point, we will start the process of making the necessary adjustments based on additional details of your home.

My standard CMA does not account for differences in finishing details, needed decorative updates, the condition and current state of repair, or staging and how your home will show. These details factor in as adjustments are made to the initial CMA. With some minor tweaking, we arrive at solid, competent Fair Market Value of your home and are ready to price your home to sell!

If you are in the process of selecting your Realtor in Louisville KY to price, promote and market your home to a timely sale, do not hesitate to contact Chris Dugger via e-mail or call (502) 641-9802. In a 45 minute listing consultation I will not only present you with a solid Comparable Market Analysis, but will introduce you to a comprehensive promotional plan to position your home for a successful sale! Don't forget to visit The Louisville Drop for additional topics relevant to Louisville homeowners in today's real estate market.

 

Gail C. Harris
Resource Network, LLC SFR, AHWD, ACRE, SMAR Board Director - Chesapeake Beach, MD
Reach the BEACH with Gail C. Harris (cell: 703.868

I like how you link one of your posts to another; great marketing tool; how did you do that? :)

Oct 20, 2010 11:29 PM
Hercel Spears
Advanced Realty Education HomeSmart Realty - Tempe, AZ

Good technique in determining the "trend" of the market.  We all know there is no exact science to exactly how fast a market will rise or fall but your theory seems to be based on sound evidence.  Your clients will be served well Chris.  Thanks for posting this.

Oct 21, 2010 05:06 PM
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

Micro market! Yes! I thought I was original with that idea! National, Local, Neighborhood and Micro (which I define as the neighborhood at a particular point in time) ie: If there are 8 homes for sale in the neighborhood this week and 1 two weeks from now, the "micro market" in 2 weeks is more favorable for our listing to enter the market. Very well written post Chris. I can tell you are a pro.

Oct 22, 2010 01:57 AM
Pat Haddad, ABR, CRS, ePRO, GRI
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel, Fishers, Westfield IN Real Estate Expert

Chris-You make a CMA almost scientific.  A good analysis takes time and thought.  I would definitely hire you to sell my home!!

Nov 13, 2010 04:08 PM