Keeping Real Estate...REAL
COMPARABLE MARKET ANALYSIS
The first step in a CMA is to answer the question, "How does a seller’s property stack up against the competition? A seller’s property can be compared to similar properties that:
☛ are presently for sale;
☛ have sold during the past 6 to 12 months;
☛ have either expired or been removed from the market;
This step assist sellers in striking a delicate balance between obtaining the highest dollar value for the property and appropriately positioning the property in the marketplace. I truly believe that such an analysis is also of outmost importance from a buyer’s perspective. When a buyer has seriously narrowed the search to 1 to 3 homes, a comparable analysis can provide informed guidance to the buyer, suggesting a purchase price. This keeps in check the sentimental and emotional excitement of wanting a particular property at any cost.
Both seller’s and buyer’s perspectives can create a strenuous tug of war battle between a sentimental value of a property, that is, price paid, cost of years of upkeep and improvement expenses, versus the market value, based on statistical factors such as, current trends, past trends, economic factors and an objective evaluation of the strengths and weaknesses of the property. Appropriately striking the delicate balance between sentimental value and market value is probably one of the most potent factor in the success of the sell or purchase of a home. Reality is, there are very few purchasers would pay more for a property than its assessed market value and few sellers would sell their property below the market value, thus, the importance of the delicate balance of value.
I rely on sources to help identify market trends and gather the necessary data to conduct a CMA. The Ontario Real Estate Association and The Real Estate Council Of Ontario cautions sellers of the problems with overpricing their property on the market.
These concerns include:
☛ getting other salespersons enthused about the property;
☛ possibility of property remaining unsold and become market stale;
☛ risk of appearing in the wrong price category and thereby restricting the number of qualified buyers who might have otherwise seriously consider the property;
☛ the risk of becoming a comparison house;
For me, providing the honest monetary picture is at the for-front of my relationships with the seller. Naturally, the seller makes the final decision in determining the selling price, which I fully respect.
How long does it take to market a property?
The length of time it takes to market a house will vary. Some properties will sell in a few days, others may require several months. The following are five factors that influence the time it takes to sell a property:
(1) Competition Every buyer makes his decision about which home to buy and how much it is worth by his other choices at the time he buys. The supply of other choices the Buyer’s will compare with your home is constantly changing each week and month. The current competition always affects the Buyer’s opinion of your property and what he thinks it is worth. So, the question is: What will be the Buyer’s other choices at the time they are shown your property?
(2) Price If the property has not sold after a reasonable length of time, but other similar properties have sold, then the price may need to be reduced. If this is true and the price is not reduced, a sale may be delayed or prevented;
(3) Property If the property should show poorly or have major defects which cannot be, or are not corrected, a sale may not occur until the defects are corrected or the price is adjusted to compensate for them;
(4) Financing The current cost of mortgage financing plays an important role in affordability to most prospective buyer. If these costs are high, then the financing may cause a delay or prevent a sale;
(5) Timing is the condition of the real estate market at the time of the sale. Supply and demand are the factors influencing whether it is a Seller’s or a Buyer’s market. Neither the seller nor the listing agent can change the market conditions at the time the property is for sale. It must be accepted for what it is.
My commitment to you!
1. Get as many QUALIFIED buyers as possible into your home until it”s SOLD!
(2) Communicate the results of our activities to you;
(3) Assist you in getting the HIGHEST POSSIBLE DOLLAR VALUE for your property;
(4) Constantly look for the best possible methods of exposing your property to the potential buyers;
(5) Suggest and advise you of any changes you might want to make to your property to make it even more marketable for the buyers;
(6) Immediately alert all Local REALTORS of your property;
(7) Immediately place our recognized sign on your property;
(8) If your home is listed on MLS® system, on open house for all REALTORS will be held;
(9) Advertise as necessary, through our marketing sources;
(10) Follow-up on all sales people that have shown your property;
(11) Represent you upon the presentations of ALL offers and help in the negotiating process;
(12) Handle follow-up and keep you informed, after the contract has been accepted until and after the closing procedures;