The Benefits Of A Seller-Prepared CMA
How To Distill a Real Estate-Provided Comparative Market Analysis (CMA)
As I mentioned in my video, we use this info (you’re about to read) to distill what our 71-page demo CMA was meant to achieve for both sellers and buyers.
In real estate, a comparative market analysis, or CMA, can be a very valuable tool for sellers who are looking to list their property on the market. A Comparative Market Analysis (CMA) is a document prepared by a real estate agent (or broker) that compares a seller’s property with similar properties within the same area. The CMA will also show properties that have recently sold or are currently on the market. In order to maximize the profit from the sale of their property, it is essential for sellers to determine the fair market value of their property before determining the right listing price.
From a seller’s perspective, there are a number of benefits for getting a CMA for your property from your real estate agent.
When your real estate agent provides you with your CMA report, more than likely, you will be overwhelmed by the amount of information that is being provided to you. But keep in mind all of the provided information is meant to assist you as the seller in determining the right listing price for your property.
With the help of your substantial CMA report, it will allow you to sell your property as quickly for the maximum amount of money. To achieve this, the data in the report will assist you in determining the right price to sell your home. If you, as the seller, set the price too high, you may need help finding buyers, and your property may sit on the market for a long time. On the other hand, if you set the price too low, you may sell their property quickly, but you will miss out on potential profits.
A CMA helps sellers strike the right balance by providing them with data on recent sales of comparable properties and those comparable properties currently active in the same area. It also provides them with information on the current state of the real estate market. It will likely include, among other data points, the current absorption rate (homes sold/homes available).
Additionally, the CMA will also give sellers an indication of what the competition is like in their area. Sellers can gain a better understanding of what sets their property apart from the competition by comparing it to similar properties that have recently sold or are currently available. As a result, they are able to use this information as a tool to determine how best to market their property in order to differentiate themselves from their competitors by using this information as a means of marketing their property.
Moreover, a CMA can also be a powerful tool for sellers when dealing with buyers. When a buyer makes an offer, the seller can use the CMA to support their asking price or to negotiate with the buyer if the offer is too low. Without the deep analysis and supporting data points a real estate agent-generated CMA will provide, the seller would have no tangible material to counter the lower bid offers that may be presented to them.
In addition to helping sellers prepare their property for sale, a CMA can help them identify any areas where the property is lacking in comparison to comparable properties so that they can improve the property accordingly. As an example, suppose the CMA indicates that comparable properties all have updated kitchens, whereas the seller’s property has a kitchen that is outdated. In that case, the seller may wish to consider making some improvements to their property to make it more attractive to buyers.
Ultimately, a real estate market analysis is a very useful tool for sellers who want to put their property on the market. It helps them determine what price to list their property, if there are any particular items that may need to be upgraded, how to negotiate with buyers, how to prepare their property for sale, and how to understand the local real estate market. Getting a CMA is a critical part of the selling process and can help sellers maximize the profits they receive when they sell a property.
If you live in Spring Hill, TN, or the greater Middle Tennessee area and would like to speak with me on this topic and others, please feel free to contact me. I’d be happy to review a sample CMA report with you.
If you’d like to preview homes in Spring Hill, TN,
please feel free to reach out to me:
M:931–548–6076
E: paul@paulperryrealestate.comI’d also be happy to show you homes in Williamson County,
and the greater Middle Tennessee area.
