How a CMA establishes an Asking Price for Your Home
Selling a house is a major financial decision that has to be made with great care and prudence. A crucial part of this process is establishing the selling price for your home. It is vital that you don't overprice your home or determine a value that is much lower than what your home deserves. To prevent such costly errors from happening, home sellers can opt for a CMA to ascertain their home's value.
The CMA is a comparative market analysis of your home prepared by a real estate agent. It is a great tool that you can use if you are about to sell your home. The CMA gives you a comprehensive analysis based on various aspects that helps you establish the approximate asking price for your home.
A real estate agent prepares the CMA while taking several factors into consideration. For those of you who are planning to sell your home, read on to know how a CMA establishes an asking price for your home.
As a first step, the realtor starts by examining the sales history of homes that have been sold over the past few months in your neighborhood. He then evaluates the various details of these sales which include the closing price, home improvements, number of rooms and bathrooms, square footage and size of property, etc.
The realtor then takes into account the asking price of homes that are currently listed in the neighborhood. This provides an insight into the current market prices to the real estate agent which would contribute towards determining a competitive price for your home.
It is ideal if can get someone who can ascertain the value of your home objectively. This is always better than having someone who is emotionally attached do the job as such a person would find it hard to price your home impartially. Generally, owners who price their home themselves, tend to price it too high. Such homes suffer from a major disadvantage in that they sit on the market for a longer period than homes that are rightly priced.
To avoid such unfortunate events, you can get a good real estate agent to carry out the CMA for your home. A CMA from an experienced real estate agent would not just establish the correct asking price for your home but also lead to a quick and hassle-free sale.
