Competitive Market Analysis ~ Why You Need One

What is a Competitive Market Analysis?

As you prepare to put your home on the market you may ask yourself "what is a competitive market analysis and why do I need one?"

A competitive market analysis can be called several different things, such as comparative market analysis, CMA, and a right price analysis are among some of the terms.

A competitive market analysis (CMA) is an informal estimate of the current market value of your home. Just as a CMA is used to assist in pricing a home correctly for sellers it is also a very important tool for buyers in determining if the home they are going to make an offer on is listed at fair market value.

A CMA contains different aspects of a home including square footage, features and lot size and compares it to other homes in the area that are for sale or have recently sold. It is important that you do understand that a CMA is not an appraisal of your homes value.

When you are ready to sell it is very important that you don't overprice your home. Having your home the highest price in the neighborhood will only make the other homes look like a better deal to potential buyers. The first couple of weeks on the market are the most important and you don't want eliminate any potential buyers. While dropping the price after a certain amount of time on the market may seem like a good idea, it can give the impression that your home has flaws. You always want to consult with a Realtor to find out what the potential market value of your home is.

A competitive market analysis can not work alone. In addition to pricing your home correctly you need to make sure a marketing plan has been set in order to bring the potential buyers to your home. Online marketing, social media marketing, direct mail marketing and open houses if used correctly can assist in getting the spotlight on your home.

Did you know that you should get a competitive market analysis if you are considering a major remodel or upgrade? Well, you should. There is nothing more frustrating then putting a lot of time, thought and effort into upgrading and remodeling your home and then not getting a return on your investment. 

If you would like to know the potential market value of your home, whether you are considering selling or remodeling, call or email me for your free, no obligation competitive market analysis.