Your home is likely your biggest asset so it’s important to keep tabs on its value.
Pricing your property is both an art and a science and if you’re looking to sell your home, it’s critical that you get it right from the start rather than adjusting the price later on.
A comparative market analysis (CMA) is a report that estimates your home’s value by comparing it to similar properties that have recently sold in your neighbourhood.
In addition to homes that have recently sold, homes currently on the market are researched along with homes that didn’t sell in order to give you a better understanding of current market conditions.
It’s important to compare homes that are similar in style, age, square footage, etc. Adjustments should be made for features such as a fully-finished basement, a double-car garage and any recent updates or renovations that can affect a home’s value.
Online home evaluations are quick and easy but they’re not always accurate as it’s hard to capture the nuances that make your home unique. It’s therefore best to have an agent do a walkthrough so they can see your home firsthand.
A professionally done CMA is essential for setting a competitive asking price that will lead to a successful sale. Even in today’s highly competitive market, if you set the price too high, you might end up scaring buyers off and redirecting their interest to other homes that seem more reasonably priced.
Aside from setting a price that will attract the maximum amount of interest from buyers, a CMA will also be a valuable tool during negotiations as concrete facts of past sales will help justify your asking price.
You don’t have to necessarily be ready to sell your home to receive a CMA. If you’re thinking about renovating your home for instance, a CMA can help give you a better idea of how much value certain renovations will add to your home so that you can move forward with confidence.
A properly done CMA is a crucial tool in helping you get top dollar should you decide to sell whereas incorrectly pricing your home is a mistake that could end up costing you thousands of dollars and months of frustration.