■ Complimentary Home Evaluation
Before you list your house for sale with a real estate agent, the agent will typically come to your house to evaluate the property and then prepare a comparative market analysis, to see what the property might be worth.
'Comparative Market Analysis'
I will examine the prices at which similar properties in the same area recently sold. As your realtor I perform a comparative market analysis for my clients to help them determine a price to list when selling a home or a price to offer when buying a home. Since no two properties are identical, I work at making adjustments for the differences between the sold properties and the one that is about to be purchased or listed to determine a fair offer or sale price.
A good CMA can tell you:
- what homes like yours are actually selling for
- how long it’s taking for them to sell, and
- what their sale prices are in relation to their list prices (the difference between what people actually got for their house and what they asked for).
Many homeowners find it confusing that there are various numbers floating around that indicate their home value. Here are a few:
- Property tax assessment. Each city or town will use a formula to establish home values for a tax assessment, but this price rarely correlates with the market value of your home. Your tax assessment can be higher or lower than the current market value.
- Homeowners insurance value. Insurance estimates are based on the cost of replacing your home without the land, so this value is skewed compared to market value.
- Mortgage balance. Your mortgage balance simply reflects your home loan. The difference between your loan payoff and the market value of your home is your equity.
- Neighbor’s home value. Even if your neighbor’s home is similar to yours, it’s not likely to be identical.
- Cost when you purchased the home. Regardless of how long ago you purchased your property, the value can have gone up or down.
- Desired value. You can always try to put your home on the market for your desired price, but if you’ve over- or under-priced it, you’re shortchanging yourself. because you’re either selling too low or your house could sit on the market and eventually sell for less than if you priced it correctly in the beginning.
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*