Comparative Market Analysis (CMA’s)
Which is better, auto-generated, or a manually created CMA?
Who benefits from the information created from a CMA?
CMA’s are not just for sellers getting ready to list their home. They are also for buyers getting ready to make a competitive offer. That’s right, CMA’s are essential on both sides, buying and selling a home.
What did you need to consider when creating a CMA?
- Where is the property located?
- When was the home built?
- Did it have any upgrades or remodeling?
- What is the square footage?
- How is the curb appeal?
- How is the landscaping, not just the front, but the whole property?
- Quality of the property?
- Is the interior dated?
- Are there comparable active listings?
- What are the sold comparable properties in the last three to six months?
- Are there currently any pending listings?
- Are there deactivated or expired listings?
- And Knowledge of the local market!
What Zillow can’t see
Let’s talk about auto-generated CMA’s such as Zillow. Look at the above bullet points. There are some bullets points that an auto-generated system can’t review (the bold bullet points above). Auto-generated CMA’s can’t see the upgrades, curb appeal, landscaping... It can’t tell if your kitchen or baths have new high-end appliances, granite countertops, or are the original contractor grade. Plus, what is the condition of your home? What was the condition of the property on your block when it sold? Was the roof new and the HVAC units brand new, or are they on their last leg? These are essential factors that can affect the price. Auto-generated CMA’s cannot distinguish between a fixer-upper and an updated home. Other factors, why did the house on your block sell? Did they take a lower cash offer because the homeowner needed to sell fast?
Auto-generated CMA’s can be off anywhere from 7.5 to 10 percent. A property on Zillow valued at $595,000, can have a variable of $45,000 to $60,000. When CMA’s are created manually, more data points are collected (as shown above). Data points are also collected by physically walking into the competitive homes for sale and examining the condition, upgrades, style, and so on. That is impossible for auto-generated CMA’s to factor in when calculating the price.
Pricing too low or too high
You don’t want to price too low and leave money on the table. That is an apparent mistake. But overpricing can be just as bad. If the home is overpriced and you get an offer, and the appraisal comes in lower than the offer, now you have a predicament. The buyer needs to come up with the cash to cover the difference; the seller lowers the price; even worse, the deal falls through. Plus, your home was off the market during that period, and you wasted precious marketing time. The first two weeks of a listing are when you get the most prospects, so pricing right is critical. You can be leaving money on the table or overpricing your home, which can cause it not to sell.
When you are ready to sell your home, you need an accurate price.
As you can see, physical CMA's are the best, and it is a Free service I provide. So, why wouldn’t you have me give you a free competitive market analysis of your home?
Call me today at 480-955-7003; there is no obligation
In today's competitive market, you need a passionate, local advisor that can help you navigate the home buying and selling process. As a valued client, you'll receive:
• Trusted resource for answers about the process
• Local market knowledge
• Access to industry-leading real estate tools
• Dedicated attention to understanding your needs and ensuring your satisfaction
• Strong negotiation skills
• Support through closing and beyond