There is no doubt about it – we are at the height of the market, and there are no signs of slowing down. According to AZ Big Media, home values in the Phoenix Metro Area have grown 20% Year-Over-Year, and on average, only stay on the market for seven days. You may find yourself wondering, “What is my home worth in today’s market?
There is a lot of opportunity for would-be sellers. With low inventory (few homes coming on the market) and high demand, it’s a great time to put your equity to work for you. The first step to evaluating if this is the right time to sell is to get a Comparable Market Analysis, also known as a CMA. A CMA is a snapshot of the potential listing price based on neighborhood data and an analysis of comparable homes sold in your community.
What is My Home Worth? Start with a CMA
A CMA is a helpful first step for someone considering selling their property. It provides insight into a possible listing price, but it also gives the homeowner an idea about what work may need to be done to sell for its highest potential. For instance, there may be particular upgrades that are popular in your area, like granite countertops, outdoor decks, or premium flooring, which are reflected in the sales price. It may be worthwhile to do some upgrades, but demand is so high in today’s market, it usually isn’t necessary. Some buyers are willing to forego repairs and upgrades to make their offer more appealing and so that they can put their own touch on the home.
A CMA can also be useful for someone considering refinancing or remodeling a home that they don’t plan to sell just yet. It can help a homeowner determine the possibility of refinancing or how remodel work could impact their home’s resale potential in the future.
What is My Home Worth? CMA vs. An Appraisal
A CMA is different from an appraisal. An appraisal report can only be created by a licensed appraiser who must visit a property to determine its value by comparing it to what other homes in the area have sold for. A CMA, however, will typically also take into account other active properties in the area for a more timely look at the market activity nearby. Appraisals do not consider active listings. So, a CMA is prepared by your Realtor based on active listings that can help you see the potential competition and sales prices in your neighborhood, while an appraisal is a valuation prepared by a licensed appraiser comparing your home only to recently sold homes.
Determining a Listing Price
A Desert Dimensions Properties Realtor will start by looking at recently sold units, then active and pending ones. This gives us a baseline to work from in terms of the specific area. Then we take into account the detail of the property itself – any upgrades, renovations, and amenities that make it unique. Basically, ANYTHING that could affect the valuation of your home is part of the calculation – every factor helps us arrive at an accurate CMA. The biggest pitfall for most agents is that they fail to look at the active properties. Most agents look at the sales data, but other active listings are your property’s competition.
How Much Does a CMA Cost?
Desert Dimensions Properties Realtors never charge for a CMA. We consider this an important first step for homeowners to decide if it’s the right time for them to sell and as an opportunity to get to know and trust the Realtor while building the relationship. It’s something that an experienced agent produces as a tool for their client (or potential client) in the decision-making process.
A CMA is something that a homeowner should seek out well before they think they need it. They should think of it as part of their research and information-gathering. It’s critical for homeowners to have an accurate number, even if it’s approximate, when considering their home’s value and how it might impact their future plans.
Get your CMA today, call Desert Dimensions Properties at 480-270-5355.
Learn more:
What is Seller Disclosure and What Do I Need to Disclose?
How Can I Get the Most Money for My House? A Drama-Free Sale