| A CMA
(comparative market analysis) is essential to determining the potential
value of a property. There is no common formula or procedure for
Realtors®; therefore they come in many flavors. Some formulas work for
the seller helping to price the property correctly, other formulas
don’t. The most important consideration is the comparability of the
properties – location, age, size, condition, lot size, bedrooms, baths,
views, etc. Poor comparables will lead to a poor CMA and poor pricing.
Poor pricing can either be overpricing or undervaluing – each hurts the
seller. Properties sold within a short time prior are the best
reflection of the market. If prices are rising, solds are a reflection
of history and might not help you obtain the best price. Cost per square
foot is important but not the most important consideration. Hamburger
sells at different prices per pound based and quality of the grind –
sirloin, chuck, regular, etc. I
have a proven formula for accurate pricing that I use to help my
prospective sellers determine the sales price that they will most
probably get and how to set a list price accordingly to obtain it. Most
of my listings are under contract within the month they are listed if
priced correctly. This saves considerable emotion and concern, price
reductions, and tense feelings about why the property isn’t selling.
Marketing will accomplish getting the message to the prospective buyers,
but if the property is overpriced, they won’t respond after a couple of
months. Price reductions can sometimes rejuvenate the listing, but
continuous price reductions can make a property circumspect for no real
reason.
Call me for a free CMA.*
* Requires a brief 15
minute visit to the property to determine condition and features. |
