What is a Comparative Market Analysis (CMA)? Insights from an Auburndale Real Estate Agent
Before putting your Auburndale home on the market, you should obtain a comparative market analysis (CMA). A CMA is simply a report that tells sellers how much their home is worth based on comparable home sales — sales of homes that are mostly identical in size, shape, and condition to the seller’s home. A CMA can help you determine your home's actual value, which is why preparing this report should be the first of many essential steps in selling a house in Auburndale, Florida.
While you can perform your own comparative market analysis, it is best to enlist the help of a reputable Auburndale real estate agent. This is due to the fact that real estate agents have access to up-to-date information about:
● Active, pending, and expired real estate listings in your local market.
● Local market trends, including the average number of days homes have remained on the market before being sold.
● Your local market’s recent highest, lowest, and average home sales prices.
What Should a CMA Report Include?
Active listings or homes currently for sale: This will give you a good indication of the properties your potential homebuyers will be looking at and comparing to yours. As a seller, you can list your Auburndale home at any price, so don’t read too much into active listings. In the end, the value of your home is determined by what a buyer is willing to pay for it.
Pending listings: A pending listing is a home that is currently under contract. This indicates that the home sale has not yet been finalized. Pending listings, like sold listings, will give you a better idea of what homebuyers are willing to pay for a home comparable to yours. Because pending sales are still subject to legal negotiations, this information is often kept under wraps.
Sold listings: The prices at which comparable homes in the same zip code as yours have recently sold will help you determine an accurate market value for your Auburndale home.
Withdrawn or cancelled listings: Sellers often pull their homes from the market for a variety of reasons. Changes in life circumstances, low bids, and costly repairs for buyer financing are just a few examples. You can use this information to assess how high is too high.
Expired listings: An expired listing is one that has been on the market for longer than the term of a realtor contract. These properties are often overpriced and not always aggressively marketed.
It is crucial to only compare properties that are similar to yours in a CMA. Important factors include the following:
● Square footage
● Type and age of construction
● Amenities and upgrades
● Location
Remember: A CMA does not guarantee a price. Many factors come into play when it comes to pricing a home — some of which are highly personal, such as a seller’s motivation. Some sellers are in financial distress, or are under pressure to relocate for work, and are willing to reduce the home’s price to sell it quickly. Others are patient enough to wait for the right buyer to come along and pay a premium for their home.
Looking for a Professional Auburndale Real Estate Agent?
If you are looking for a real estate agent to help you create a CMA, look no further than Lisa Matheny, Realtor with the Dalton Wade Real Estate Group. Over the years, Lisa has developed a wealth of knowledge and expertise on local communities, current market conditions, and the home selling process. She can use her skills and abilities to provide you with guidance and advice on what you need to know to make the best decision for your real estate needs.
Call Lisa today at (863) 412-6633 or contact her online.