Homes For Sale are often Priced with Comps and CMA's.
The first thing we need to do is define what comps and a CMA are. Comps are properties comparable to property you are interested in. A CMA is a competitive market analysis which consists of comps for the home or homes for sale that you are interested in.
It is very important to find the real market value of homes for sale whether you are buying or selling. Top dollar and the shortest time on market are important for the sellers. Buyers don't want to pay above market value either. To get a good idea of the value of a property, analyze comps and CMA's with you local Realtor, preferably with RE/MAX.
So, how do we determine which comps to use for our CMA? Good comps are within 200 square feet, located in a similar place, sold in the last 90 days, and be built within 2 years of the year built of the subject property. Now, I like to do two CMA's for each property - one for direct comps and one for the entire neighborhood. The one for the enitre neighborhood is based solely on location.
When pricing a home, there are a couple of other guidelines. Use the data from the CMA's and price the home between the average listing price per foot and minimum listing price per foot for the neighborhood and direct comps. This way, buyers will not immediately skip over the home and are more likely to schedule a showing.
Many websites now allow you to do your own research. However, sometimes they can be hard to navigate. Often, it's very helpful to enlist the expertise of your local Realtor (preferrably with RE/MAX). He or she can help guide you through the process and should have a keen sense of the market. I work out of hte Edmond, OK and Oklahoma City area. So if you need one here, I'm your guy.
The first thing we need to do is define what comps and a CMA are. Comps are properties comparable to property you are interested in. A CMA is a competitive market analysis which consists of comps for the home or homes for sale that you are interested in.
It is very important to find the real market value of homes for sale whether you are buying or selling. Top dollar and the shortest time on market are important for the sellers. Buyers don't want to pay above market value either. To get a good idea of the value of a property, analyze comps and CMA's with you local Realtor, preferably with RE/MAX.
So, how do we determine which comps to use for our CMA? Good comps are within 200 square feet, located in a similar place, sold in the last 90 days, and be built within 2 years of the year built of the subject property. Now, I like to do two CMA's for each property - one for direct comps and one for the entire neighborhood. The one for the enitre neighborhood is based solely on location.
When pricing a home, there are a couple of other guidelines. Use the data from the CMA's and price the home between the average listing price per foot and minimum listing price per foot for the neighborhood and direct comps. This way, buyers will not immediately skip over the home and are more likely to schedule a showing.
Many websites now allow you to do your own research. However, sometimes they can be hard to navigate. Often, it's very helpful to enlist the expertise of your local Realtor (preferrably with RE/MAX). He or she can help guide you through the process and should have a keen sense of the market. I work out of hte Edmond, OK and Oklahoma City area. So if you need one here, I'm your guy.
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