Many people, have heard of the concept of, a Competitive Market Analysis, or CMA, but, often, when it comes time, to use them, effectively, ignore some of the essentials, etc, of using them, to your best advantage. Great real estate agents, realize, they can properly, effectively, help and assist, their clients, when/ if, they use their professional knowledge, experiences, and expertise, to create an overall mindset, for their clients, of recognizing and accepting, a greater degree of reality, and using one of the principal adages of real estate to their best advantage, Price your house, right, from the start! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 key considerations, for making these, work, more effectively, for the homeowner, and, what goes into, effectively, professionally, creating a meaningful, CMA.
1. Thoroughly/ objectively, consider/ examine, the subject house and property: Many homeowners, develop, an emotional attachment, with their homes, and, thus, over – value, what they believe, prospective, qualified, potential buyers, might believe. A professional real estate agent, will thoroughly, and objectively, examine, what we refer to, as the subject property (your home), and examine, its strengths, weaknesses, and how, these relate, to the area, market, present times, and recent past.
2. Strengths and weaknesses: How strong, are the house’s strengths, and how weak, are its weaknesses? How might these impact, the selling price? What does this home, offer, others may not, and what does it lack? Is there a way, to accentuate all strengths, while minimizing, as much as possible, any and all areas of potential weakness?
3. Location: Location, location, location. This fundamental concept, and reality of real estate, is one factor, which cannot be changed! What might make the particular area, neighborhood, block, etc, offer potential buyers, which they seek? On the other hand, are there ways, it hinders the potential market?
4. Recent sales of comparable properties/ houses: When examining past sales, it’s important to pay far more attention to the near past (last 3 – 6 months), than going back further. What did these houses, have, which yours does not? What does yours possess, which they didn’t? Make sure, you only look, at very similar area, style of houses, similar sizes, etc, when looking at these!
5. Currently, on market: Carefully, review, what is currently on the local real estate market. Develop a well – considered, realistic, price range, and price your home, to sell, from the beginning, by pricing it, right, from the start! Compare to those, in similar locations, same condition, sizes, lot sizes, etc.
Hire an agent, who explains, carefully, why he suggests pricing, at a specific price – point, and his overall marketing/ selling plan. Never take a short – cut, when doing this right, will make a significant difference, in achieving your objectives.