Last week we talked about the Zestimate, and some of the problems we see with these values. Today, we will tell you a bit about the process a realtor takes to value your home.
You may have a sense of what your home is worth, but the best way to find out is by reaching out to an experienced real estate professional to put together a CMA. CMA stands for “Comparative Market Analysis”, or in other words, the evaluation a realtor performs to establish a list price and estimated sales price for your home.
As we’ve discussed, the internet provides an incredible amount of information surrounding home values, but not all is accurate. For the average home seller and buyer, there are so many factors involved in determining a value that a hands on approach should be sought out. Just as shopping for major items online can be difficult to navigate without seeing the item first hand, so can trying to establish the value of your home.
The CMA is not a formal appraisal, but the process is similar in many ways. Upon request, we will gather up similar listings and sold properties to compare with your home. It will be important to establish the correct value to list the home from the start. The initial list price is the biggest and most critical first impression. If priced too low, you can miss out on an income opportunity. If priced too high, the buyers and agents will move along to the next house – and may not return.
We will walk through your home and gather information from you about the age, lot size, any recent upgrades, and discuss your timeline for selling. After our meeting, we will head back to our office to gather all relevant information to your home and the current market conditions.
In the report, you can expect to find the active listings nearby that are most comparable to your home, homes that have sold and closed in the last twelve months, as well as pending sales. The CMA might also include listings that may have been active but expired. Additionally, we may add suggestions to the report for changes or improvements that can be made to get the highest price possible.
Keep in mind that Utah is a non-disclosure state. What this means is that the sales price of a home does not have to be disclosed; it is at the discretion of the buyer if they wish to release the number for public information. Therefore, in Utah, it can make the CMA process more difficult and less accurate, which is one more reason to choose a very experienced, local realtor to handle one of your greatest assets.
If you are considering selling your home, let us help you start the process by putting together a CMA for you. We’d love to work together with you to take advantage of the active spring market in Park City.
Let us know if you’d like to discuss how we can determine the appropriate value for your home.