Whether you’re considering buying a new home or refinancing your existing property, getting a clear picture of the home’s value is a critical factor in making the right decision. Getting an estimate of your home's Comparative Market Analysis (CMA) can be a great first step in determining how much a property is really worth.
A proper list price that reflects current and realistic market conditions is critical to getting your Encinitas real estate property sold quickly. I don’t want you to under–price, but it’s worse to over–price in any market. Buyers discount value by DOM, Days On Market. The longer a home stays on the market, the greater they’ll discount their offers. So, a realistic list price is how I make sure your property sells without languishing on the market.
Note that there are many factors that may have an effect on your home’s value. Automated home valuations on other sites can account for some variables in the market, but other factors, recently upgrades to a home or issues that might come up in an inspection are more difficult to account for with an automated valuation tool. The valuation you will receive from me is a custom, professional, in-depth market valuation, and it's still FREE.
CMA of Sold Properties
First I select comparable properties out of those sold recently and in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in features, location and characteristics with your home. They must have been sold as recently as possible so the sold prices are of maximum value.
I then do a through “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, I would adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” I make adjustments for garages, bathrooms and other major features to bring our comps to closely compare with your home. Then I use those sold prices to arrive at a preliminary listing price for your home. I say “preliminary” because I have another CMA step.
CMA of Current Listings
Now I get more comps, but instead they’re properties currently listed and your competition. I go through the same adjustment process, and I come up with another, possibly higher or lower, price suggestion for your home. This second CMA gives me more up–to–date information about the market which could cause us to lower or raise our preliminary list price to adjust to the current market. Using the two CMA results and an experienced analysis of your home’s position in the marketplace, we can set a listing price that will get the job done.
While you will still need to undergo an appraisal for most kinds of loans, my CMA is a fast, free way to get an estimate that can be used to help you decide what to offer on a new purchase or how much equity you may have for a refinance.