What Is a Comparative Market Analysis?
It’s how REALTORS® determine the listing price for your home
A comparative market analysis (or CMA) is an estimate of what your property is worth based on features of similar properties and their recent selling prices. It’s really intended as a starting point to market a home. Current market conditions will determine the final selling price when a motivated buyer and a motivated seller reach an agreement on price. Property assessments for taxes and appraisals for vendor financing have different methodologies compared to a CMA, which is intended for marketing.
When I do a CMA for your home, it will usually include three examples each of active, cancelled or expired, and sold listings; in order to show a range of Blue Mountains home prices. Along with your property assessment or recent appraisal, this study will allow us to have a clear picture of trends so we can make a decision on the initial asking price for your home. Comparable properties usually have similar styles, sizes, rooms, and neighbourhood. Sometimes, a unique property may have few comparables so it’s necessary to search a wider radius and make educated guesses. Depending on the market – and the Blue Mountains area is quite brisk – the price may be higher or lower than other comparable properties.
How listing price affects time on market
Luxury homes and special properties may require a longer marketing period to ensure the advertising reaches the greatest number of potential buyers. Most homes will sell soon after they are posted to MLS®. A price that is too high or too low can create a disadvantage to the seller so I try to list and market homes at the right price, at the right time of year, to the right buyers. This ensures that you receive the best possible price in the shortest period of time. Please contact me with your questions about Blue Mountains home prices. I am always available to take your call or respond to email and texts.