Ask for a Comparative Market Analysis before you sell your home to establish an estimate of value on your property.
Your agent will pull records of sold properties that are similar to yours and in the same geographical area. By pulling properties that are recently sold and are similar to the subject property and in the same geographical area, information is obtained to compare these properties and adjust value for differences such as upgrades or age of amenities.
Your agent should also include in this report or offer a second report with currently listed properties in the area. This report would include comparisons to currently listed properties in the area that are similar to subject. This would allow an assessment of the current competition and might lead to an increase or decrease in the estimate based on the sold properties.
Quality of Comparables
The accuracy of the CMA in determining market value is the selection of the best comparable properties and there are several things your agent will consider when choosing comps:
The property sold date: Sales more than two or three months in the past are not good comps, especially in fast-moving markets. The more recent the sales the more relevant the sales price will be.
Location, Location, Location: Comps in the same neighborhood or general area are most advantageous but if there aren't suitable comps in the same subdivision or neighborhood, other parts of town may be the only resource available.
Characteristics: Number of bedrooms, baths, the square footage, lot size, upgrades, age of repairs, all these things should be as similar as possible to your home.
Quality of the Adjustments
How does a real estate agent compensate for differences in the properties? We make adjustments to the sold prices of the comparable homes to better match our subject property.
The comparable homes' sold prices will be adjusted to factor in differences between the comps and the subject and the agent will divide each sold price by their square feet to get the sold price per square foot. We average those for our three or more comps to get one average value per square foot. Then we simply multiply that by our subject home's square footage to get our estimated current market value.
Call me today for a FREE CMA on your property!