Performing a Market Analysis to determine your home's value
A Comparative Market Analysis (CMA) will help to determine the correct selling price of your home. Ultimately, the correct selling price is the highest possible price the market will bear.
A Market Analysis includes three categories:
1. Comparable homes that are currently for sale
2. Comparable homes that were recently sold
3. Comparable homes that failed to sell
Looking at similar homes that are currently offered for sale, we can assess the alternatives that a serious buyer has to choose from. We can also be sure that we are not under pricing your home.
By looking at similar homes that were sold in the past few months, we can see a clear picture of how the market has valued homes that are comparable to yours. Banks and other lending institutions also analyze these sales to determine how much they will lend to qualified buyers.
By looking at similar homes that failed to sell, we can avoid pricing at a level that would not attract buyers.
Your Comparative Market Analysis (CMA) will be carefully prepared, analyzing homes that are similar to yours in terms of size, location, condition, and amenities. The goal of the market analysis will be to achieve the maximum selling price for your home, within a reasonable period of time, while taking into account the current market conditions.
What determines market value?
The market place is always going through changes and is driven by the forces of supply and demand. In a seller's market, where the demand for housing exceeds the available supply of homes, there will be upward pressure on prices. In a buyer's market on the other hand, where there is limited demand for the available housing, there will be downward pressure on prices. The best market is one in which there is good balance between the demand for homes and the homes that are available for sale. In a balanced market there will be better stability of prices.
The market value of a house is also determined by the condition of a house and how well it shows. One of the things sellers can do to improve the value of their home is to put it in the best possible condition for showings.
There are other factors that do NOT affect the market value of a home. For example, the money paid to buy the house originally, or how much was spent of previous improvements, does not directly translate into the price that a home will sell. Some home improvements tend to have a better return on investment than others, (click here for information on home improvements). But it is ultimately the market conditions that will determine the price that a house will bring.
When determing the market value of your house, it is best to consult with a professional Realtor or Appraiser who is experienced and closely follows the market.
For a free consultation, market analysis,
or marketing proposal to sell your home, please call me (George Cooke)
at (858) 674-1222. Or send an email to George@GeorgeCooke.com.
Be sure to include the address of the property, along with your name, telephone, and/or email address.