Jumat, 05 Oktober 2012

Pricing Your Home - The Free Market Analysis Part 1

Pricing Your Home - The Free Market Analysis Part 1

One thing I have learned in the 25 years that I have been selling real estate is that Realtors easily throw terms around that we think the general public understands as we do.   

A "Just Sold" Card comes in the Mail with an offer!
Undoubtedly you have seen the phrases, or received offers  for a  "Free Market Analysis",   or "No Obligation Market Evaluation"  or "Free CMA" (competitive market analysis), time and time again.

What exactly is a Free CMA?     For the most part consider it an estimate of market value prepared by a real estate agent for Sellers or Buyers based on what is going on in the current market.    It is an opinion based on facts and the interpretation of those facts.      

How is this estimate determined?     A true market evaluation is based on a visual inspection, an assessment and comparison of the properties location, amenities and unique features.

The real estate agent will compare the subject property to similar properties in the immediate area that have sold recently, those that are for sale, and those that are pending sale.

 For example, if your neighbors home has sold recently, but has a fireplace and a garage and yours doesn't, the agent will make adjustments to compensate for those factors in determining what your home might sell for in the current market.

What's important here?  
    Because it is not an exact science, the experience and market knowledge of the real estate agent is paramount in using the correct information and interpreting that information in order to form that price opinion.  

Why do Agents offer a Free Market Analysis?
     Everyone loves the word free, but make no mistake about it.   All good agents will put a lot of time and effort into these no obligation offerings.  So, of course this pretty much goes without saying, but they want to have the opportunity to meet with you so that when you are ready to sell, or know someone that does, they will have become the market expert in your eyes.

Want to know the value of your home?   Use this link.   What's My Home Worth? 

Posts to come:  
Part 2 - A Realtor price opinion or CMA vs. an Appraisal.
Part 3 - The Market Analysis vs. the On line Price Opinion (or "zestimate") 

Carol-Ann Palmieri
Al and Cal Realty Group


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