If you are thinking of selling your home, it's exciting to think about the profit you could potentially walk away with and invest in another home. You see and hear about houses selling for over their asking price, but how do you really know what your house is worth?
One of the most common ways a real estate agent will determine a listing price is by completing a comparative market analysis. But what does that mean? A comparative market analysis (CMA) is an evaluation of similar, recently sold homes called comparables. Comparables are of similar size, condition, age, and style that recently sold in a certain neighborhood. This comparative data combined with a realtor's local market knowledge defines how much a buyer will pay for your home.
A quality market analysis will not only look at the interior features of your home, but the exterior as well.
Square footage is a key factor when agents look at comparable homes. Typically agents will compare homes within 200-300 square feet. Anything more will need to be adjusted in the valuation. Agents will also look at homes with the same number of bedrooms. If recent homes sold in an area have more or less, the agent will make value adjustments. Bathrooms are similar to bedrooms when calculating the CMA of a home. The condition of bathrooms is also taken into account. Remodeled bathrooms will have a higher value. Kitchens offer many features that play a large role in the value of the home. The condition of the kitchen as well as the type of cabinets, counters, and appliances are all key factors. The type of flooring and condition of the flooring is another item that affects the home value. Interior features like basement types will be reviewed against comparables. Some properties do not have basements, others have full, full and finished, partial, partial finished, walk out, and the list goes on.
The type and condition of a homes siding, windows, roof and fencing are all factors agents review when looking at comparable sales and your home. Parking/garage size and patios/decks are both value considerations and significant adjustments may be made if comparables vary. A homes lot features such as acreage and lot location also have an impact on the CMA. The more acreage or the better the lot location will require adjustments. Finally, the overall mechanics of the home will be taken into consideration. Mechanics are the age of a home, model type, heating and cooling systems and electrical types. A CMA isn't just about comparing, it is all about comparing the same. This is why you need to rely on an agent with local market knowledge and who has realtor experience in the area.
Contact the experienced and knowledgeable professionals at COListings who can meet with you and complete a free and comprehensive CMA.