What is a CMA?

Overview:

"CMA" stands for comparative market analysis. This service can be prepared by licensed real estate agents, and it commonly used to price a home for sale. 

 How it works:

An agent gathers and analyzes property characteristics of homes currently for sale, homes recently sold, and listed homes that did not sell. These demonstrate what buyers actually pay in the marketplace, what owners of similar properties are asking, and the resistance level of buyers to overpriced listings, respectively. A CMA compares the subject property (property being appraised) and comparable properties--similar properties in the same market area that can be used to help estimate the value of the subject property. Agents adjust for differences between the subject property and each comparable property. Adjustments are always made to the comparable property. Adjustments are subtracted from the comparable property if the comparable is bigger or better, and added if the comparable is smaller or less desirable. Finally, the values given to each property are reconcilled. The property most similar to the subject will be most heavily weighted.

Example:

If a comparable property has one more bedroom than the subject, and a bedroom is valued at $10,000, then $10,000 will be deducted from the comparable property. Note: it may have cost more or less than $10,000 to build this room--a CMA considers value (what buyers and sellers believe a certain feature to be worth) rather than cost. This is illustrated when homeowners build pools: they often spend more on the pool than they can resonably expect to get out of it in resale. The value of the pool is, therefore, less than its cost. 

What it will cost you:

Nothing. I provide free, no obligation consultations to help you know what will help your home sell quickly and for the most money. Call, text, or email me to set a convenient time to meet.  

JackCurtis@kw.com / 614-893-8337.
Visit my website here.

Common Mistakes When Hiring a Realtor

Selling your home should be a stress free, exciting time of your life. But often, homeowners find the process overwhelming. One critical aspect of the home selling process is choosing the right Realtor. Knowing some key mistakes many sellers make when choosing a Realtor can help you avoid the same issues when selling your own home. Five common mistakes are:

• Not hiring a Realtor. Some people try to list their homes "For Sale By Owner" in order to save on commission. However, there are many downsides to this practice. You can only "show" your home when you are there, you cannot market your home on the MLS, and paperwork and negotiations will be dificult without understanding the legalities behind real estate. In the end, the commission fees are well worth preventing the trouble and headache that result from tackling such a complicated endeavor alone. 

• Hiring a Realtor because s/he is a family member or friend. Look into ANY Realtor's history of selling homes in your area. If you and your Realtor are friends and you disagree on selling tactics, it could put a strain on your relationship. 

• Not trusting your instincts when selecting a Realtor. You know your home better than anyone; trust your gut when it comes to personal decisions. If your Realtor advises you to do something (for example, add another bathroom, or update your kitchen), know that you don't have to do so. Find a Realtor who understands your style, beliefs, and needs.

Following these guidelines will help you find the most suitable Realtor for you. Once hired, that Realtor  can take care of many other common mistakes when selling your home, such as pricing your home based on desired profit and letting emotions interfere with negotiations with buyers. Looking for a Realtor in the Central Ohio area? Contact me. My knowledge of today's unique market and my competitive pricing and marketing plans ensure clients are in the best possible hands. I work to get sellers the best price in the shortest time without being pushy or demanding. 

For more information on how to select a REALTOR, click here.