CMAs for Sellers
Whether you’re buying or selling a home, your Berkshire Hathaway HomeServices network professional can give you a snapshot of the local market known as the competitive or comparative market analysis or CMA. These are convenient reports that help sellers choose a listing price and help buyers make competitive offers on a given home.
CMAs are generated from multiple listing service software and vary greatly depending on the search fields put in by the real estate professional. Each quantifier makes the search increasingly specific - type of home (detached vs. attached), zip code, number of bedrooms, baths and living areas, square footage, and numerous other search criteria.
The result is a report that tells you which homes have recently sold, their selling prices, how long they were on the market and other information. The CMA will also tell you about homes in competition with yours that are similar in size, price, amenities, and location.
When you’re looking at properties that sold, you can also learn how long the home took to sell. If it was quick, the seller was highly motivated. If it didn’t sell quickly, it was probably overpriced, in poor condition, or in a bad location.
Sellers should know that there is one major thing that can’t be quantified - buyer and seller motivation. You don’t know why a seller agreed to take less for their home or why a buyer overpaid for another home. Family problems, corporate relocations and other reasons all play a role.
CMA results may vary even between identical homes. One property may simply offer better drive-up appeal or is in better condition than the other. One may be updated or staged more attractively. Those differences can be reflected in the sales price.
You should know that there is information the CMA can’t tell you. While a CMA can provide quantifiable commodity details – such as age, square footage, lot size, and location, and number of bedrooms, living areas, and baths, it can’t tell you the subjective details that make one house more attractive than another similar home.
And that’s where your Berkshire Hathaway HomeServices network professional can be invaluable. With their market knowledge, neighborhood expertise, and connections, they can provide the house-by-house intelligence you need to make a better-informed decision. They can also provide you with macro and micro market conditions that explain why prices are trending up or down. The market is constantly changing, and the more you know, the easier it is to reach your buying and selling goals.
For all these reasons, CMAs are only as useful as the most current information makes them. While they can suggest a pricing strategy for you, the final asking price will be up to you.