In the last video I went over with you the basics of a Comparative Market Analysis (CMA) and in today’s video I’ll go over Comparable Sales and what they are.
If you haven’t watched the first one yet make sure to check it out and I’ll leave a link for you below.
Let’s get started.
Examining Comparable Sales
Comparable sales are those that most closely resemble your home. It is difficult to compare a split-level home to a single-story home. Select the homes from this list that are mostly identical to your home in size, shape and condition, such as:
Similar square footage
Appraisers compare homes based on square footage. The variance among a group of median-priced homes ideally should not exceed more than 200 to 400 square feet, plus or minus.
Similar age of construction
Ideally, the age of your home — the year it was built — should be within a few years of other comparable sold homes. Mixed-age subdivisions are common. Although the homes are located next door to each other, the homes loaded with character from the 1950s sell for more than their newer counterparts. If your home was built in 1980, say, and brand new homes up the street are selling for more, you cannot command the same price as a new home.
Similar amenities, upgrades, and condition
Appraisers will deduct value from your home if other homes have upgrades and yours does not. A home that backs onto green space will have a different value than a home that doesn’t. A completely remodeled home is worth more than a fixer. Homes with one bath are worth less than homes with two or more baths. Deferred maintenance will count against you.
Everybody knows that real estate is valued on “location, location, location,” but have you considered what that means? A home with a view of the city, for example, is worth more than a home facing a cement wall. Homes located on busy roads are worth considerably less than homes on quiet streets. Compare your home to those in similar locations. If your home sits across the street from a power plant, look for other homes with power plant exposure or those located along railroad tracks, among other undesirable locations.
Let’s run through the basic steps of a real estate CMA, Comparative Market Analysis.
You have your home with features and characteristics.
You locate three excellent comparable properties & record details & sold prices.
Adjustments to sold prices are made for differences with your property, like bedrooms, bathrooms, lot size, and so on….
Market value of your property calculated from adjusted sold comparable prices.
While it isn’t rocket science, a trustworthy CMA requires that you select comparable properties carefully. They should be as close-by as possible, ideally in the same neighborhood.
They should be current sales, best within the previous few weeks. They need to exhibit features and characteristics as close to those of your property as possible.
Doing all of this well will normally result in a CMA you can rely on.
There are a lot of CMA templates that you can download, and several examples of actual CMAs from different brokerages around the country. Here’s some advice – head over to planwithmike.ca schedule a call with me and I’ll be happy to send you a CMA for your home.
Also Do a CMA on Currently Listed Properties
This is meant to be a quick and reasonably accurate CMA calculation, and you’re advised to do a second one using currently listed properties and their list prices. This way you can see if the market has changed and prices are higher or lower and make a judgement as to how to adjust your property market value.
I’ve put together for you a quick check list that you can follow to price your home, just send me a message and I’ll send a copy your way.
Here’s The Bottom Line.
Properly done CMA is key in arriving at the proper price for your home.
Just takes a bit of research and some knowledge.
If you’re looking for someone that can help you with that
Here’s Some Great News.
I’ve set aside some time to personally take a look at what you’ve got, and what you want to achieve going forward, and I will help you come up with a strategic plan of action …FREE.
This is genuinely free offer, and there are no strings attached.
In fact, it’s even better than you realize.
Not only would I design a marketing plan for you, I will also create a detailed blueprint of exactly how it works and give you that as well.
If that sounds interesting to you …
Here’s What To Do Next.
Head over to planwithmike, click on the get started button, select a time that works for you and you’re set. Look forward to hear from you.