Selling Your Home Fast, For Full Value- The Comparative Market Analysis

Posted by on Thursday, July 8th, 2021 at 4:56pm.

Overpricing V.S. Pricing Via a Comparative Market Analysis 

Most sellers want to get as much money as possible back by selling their home. Regardless of how they come to a price, most sellers set the price high at first, then naturally come down a little if they don’t get any serious offers. Sellers can often overestimate the price of their home for a number of reasons, such as sentimental value, hours of labour and money put in for renovations or upgrades, and so on. 

The last thing sellers want to be told is that their home is worth less than what they thought it was. Setting a fair price that both parties agree on is crucial regarding the client-realtor relationship. Setting the price of your home based off of the evaluation of a licensed realtor can be advantageous in how quickly your home is sold, and securing you a fair return on your investment. 

Comparative Market Analysis: 

In order to sell your home for it’s full value, it’s important to set the price of your home based on statistics. Realtors provide this via a COMPARATIVE MARKET ANALYSIS, which compares the price of your home to similar homes sold in your area. The CMA is determined via:

  1. Location of your home

  2. Selling prices of similar homes sold in your area

  3. Level of renovations and upgrades

  4. Square footage 

  5. Landscaping

 

Benefits of a CMA:

Having a properly priced home is important, even for sellers who want to sell privately. The CMA gives sellers a proper price range that they have the freedom to choose from in setting their price, so they can still set their price point to the full extent of their home's value within the CMA evaluation. The CMA can give sellers a distinct advantage in replying to offers, as it gives a concrete estimation of what offers are reasonable or not. This increases efficiency and reduces the time it takes to sell a home at fair value. 

Responding to Offers Based Off Statistics, Even When Lowering The Price:

Lowering your price may be necessary when selling your home, but a CMA also ensures that you don't go too low. People are often most concerned about not being able to sell their home for full value, but an often overlooked benefit of the CMA is that it ensures your home is not sold for below the market value range. This can be important because oftentimes when selling, sellers can drop the price either too fast or too dramatically without having an idea about being below their CMA range.

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