Selling one’s house is no easy task and getting a good price for your house is an equally challenging thing. This is where a crucial question arises, how can one determine the best market value for their house? As hectic and difficult as this may seem, it’s actually quite simple. You can simply just use a CMA or a Comparative Market Analysis with the help of your agent to find the right price for your house.
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What is a Comparative Market Analysis CMA?
A CMA is a document that is put together by a real estate agent for clients selling or buying a house when helping the clients come to a decision regarding the price for the house they are selling or buying. The presentation of the report or how well put together it depends on the real estate agent. However, the CMA always consists of a list of other similar houses that are currently available on the market or have already been sold. It also contains the price lists for these properties
The main purpose of this document is to help sellers know the current real estate value worth of their house. It also helps in lending social evidence of the suggested price range given by the real estate agent by providing similar houses on sale. This is used as a basis for comparing prices
What factors should be considered when looking at a CMA?
No two houses can be exactly the same or even their prices. But there are still some factors that should be considered when looking at a CMA. This document gives us a comparison of different properties on sale. This comparison helps the seller find the price range in which the property can be easily sold. It does not matter if the property is at the higher end of the price range or at the lower end. The last price of the house depends on what makes that house unique and different from the other houses listed on a CMA.
Some factors that should be noted when putting a price on a home up for sale include:
Age; A when was the house built? How many years old is the house
Location; the location of the house plays a huge part in its market value. If a house is located near the sewer water canal, its market value will be less as compared to other houses in the same street
Size: if the house is 5.5 marlas it will sell for more as compared to a house that is 5 marlas.
Renovations; Updates usually increase the market value of real estate property. If the house has had a fresh coat of paint, it will sell for more.
Bedroom and bathroom numbers; if the house has an extra bedroom as compared to others in the area it will fetch a higher price
Amenities; swimming pools or a backyard tend to increase property value as well.
How to sell your home with a CMA
With the help of this document, anyone looking to put their property up for sale will not have a hard time selling it. A well-put CMA also contains the time period that it took for a similar property to sell. It should only consist of those houses that are sold or are up for sale 3 months prior. If it takes too long for a house to sell, it is deemed ‘Expired’ due to its high price. To attract buyers quickly, it is best to keep the selling price in the middle of the CMA price range.
When the house is priced just right, buyers wish to go see the property for themselves. They feel like they might not be getting enough for their money’s worth. So, it’s best to have an open house viewing for any interested buyers. The more people who visit your open house, the higher your chances of receiving an offer and selling the house.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in the NextGen Marketing | Nova City Islamabad. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.