Blog 2020-05-01T14:35:54+00:00

Blog Posts

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
13 hours ago
Marco Kasel - RE/MAX

...

Some ideas about Comparative Market Analysis

One of the more critical pieces of selling your home is pricing it correctly and getting the price just right. Of course, you don’t want to leave money on the table but pricing too high can leave your home stagnating on the market.

A home that sits on the market too long leaves home buyers leery about the home…. wondering why no one else wants it. It is human nature not to want what others don’t want either.

Often an overpriced home will go unsold or has to be sold slightly below market to regain the buying public’s confidence in the home.

Ultimately, a real estate agent can make a suggestion, but it is the seller who chooses the asking price of a home. A home seller will often just want to know what a home is worth. But because of the subjectivity, it is important a seller understands what is behind the information used to arrive at a price.

So as a home seller what do you need to know about a comparative market analysis and what it means to you.

Pricing A Home Correctly Starts With Historical Data

While pricing a home can be finicky, there is a way to help determine the right asking price for your home. It is a report generated by a real estate agent.

That report is called a Comparative Market Analysis or a CMA.

A CMA in real estate is a report estimating the price your home will most likely sell for by comparing your home (the subject property) to similar homes that have sold in the last few months in the surrounding area (comparable homes of comps).

So pricing your home correctly starts with data. What does a seller need to know about a comparative market analysis.

A Good Listing Agent Will Provide A CMA

A quality, experienced listing agent will provide you with a CMA and explain how and why they did what they did to arrive at a price for your home.

Be wary of an agent that just gives you what you want to hear and doesn’t back it up with market data. There is a method for getting the right price and there should be data to support a price for your home.

Don’t be afraid to ask questions and spend time reviewing the CMA data with your listing agent.

What Makes A Good Comp?

One area of confusion for many home sellers is what makes a good comp or comparable home. There can be much subjectivity in choosing the comps for your CMA. But there are some basics to keep in mind. A good comparable home should be:

Sold in the recent past- no more than 6 months.
In the same neighborhood or a similar neighborhood.
Of similar size, no more or less than 20% of the subject property.
Similar in room count including the number of bedrooms and bathrooms.
Comparable homes should also be of:
similar age
similar style
similar condition
similar construction quality
have similar amenities. such as central air, decks, patios, sprinkler systems, etc…
Any homes outside those parameters will lead to a skewed report. Often a seller will want their home to be worth more than it is and reach for a higher number by using homes that are good comps.

Common Errors Sellers Will Make When Choosing Comps

Comparing a neighbors home that sold 3 years ago.
Using a colonial as a comp for a slit level.
Thinking a 350 m² home can be compared to a 150 m² home.
Comparing new construction to one built in the 70’s.
Knowing what can be used as living surface as opposed to total surface is another important matter.
Exceptions Can Be Made

In a perfect world, it would be great if you can find 3 identical homes in the same neighborhood with the same yard and view. But that rarely does it happen.

Exceptions can be made at the real estate agent’s discretion that adjust a comparable home to make the comp come inline with the subject property. For example, a very similar comp may have a one-car garage where yours doesn’t.

In this instance, a slight price adjustment would be made for the one-car garage. Or, a nearly identical home sold two doors down but it sold 9 months ago rather than fall inside the 6 month mark.

One Home Doesn’t Make A CMA

A CMA report is made up of several homes. At a bare minimum 3 should be used, but an agent can certainly use more.

One big mistake sellers make is pricing their home on one outlying home that is priced outside the other comps. But of course as a seller you love a higher price.

That is why it is important to use at least 3 homes for your CMA. A real estate agent will average the adjusted prices to give you the most likely selling price of your home. You have to look at pricing your home holistically.

Fair Market Value Is A Range

Often a home seller will get stuck on one number and one number only as a price for their house. And, that number is usually the highest that an agent may be able to justify.

Because each home and location is different getting the exact price is difficult.

In the end, there will be a range of pricing to keep in mind. It is usually within a 5-10% bracket.

Don’t get stuck on one number, be flexible. I am not saying give away your home but if you are reasonably close to your asking price don’t lose an offer over €5.000 if it falls in the range of fair market value.

The Value of A Home Changes

Technically a value ascertained by an appraisal or a comparative market analysis is good for the day it is done. Real estate markets go up and down and your homes value will rise and fall with the market.

If you had an appraisal or a CMA done a year and a half ago, that value is probably not valid. Practically speaking values don’t change much day to day. But 3 months of a rapidly rising or falling markets can make a big difference.

Get rid of any old values you have in your head and pay attention to today’s value.

Banks have a say

Careful not to overvalue your home as some banks tend not to be willing to lend out money if they believe the house is not worth the asking price.

Online Comparative Analysis

Automated value models you can find online, that return the value of your home by filling out a simple form do not replace a CMA.

They’re always just a compromise.

Do not replace a CMA with such an automated tool.

The comparative market analysis is a crucial piece of data not only to determine a list price for your home but also to help you evaluate offers as they come in.

It is important to carefully review the CMA data upfront so you have an understanding of what the value of your home is in the current marketplace.

Once you listed and your home has been on the market without an offer it is important for you and your agent to relook at the data and possibly adjust based on sales that have occurred since you listed your home.

--> Need help with your project? Call me up: Marco Kasel +352 621 835 778 <--
...

Some ideas about Comparative Market Analysis

One of the more critical pieces of selling your home is pricing it correctly and getting the price just right. Of course, you don’t want to leave money on the table but pricing too high can leave your home stagnating on the market.

A home that sits on the market too long leaves home buyers leery about the home…. wondering why no one else wants it. It is human nature not to want what others don’t want either.

Often an overpriced home will go unsold or has to be sold slightly below market to regain the buying public’s confidence in the home.

Ultimately, a real estate agent can make a suggestion, but it is the seller who chooses the asking price of a home. A home seller will often just want to know what a home is worth. But because of the subjectivity, it is important a seller understands what is behind the information used to arrive at a price.

So as a home seller what do you need to know about a comparative market analysis and what it means to you.

Pricing A Home Correctly Starts With Historical Data

While pricing a home can be finicky, there is a way to help determine the right asking price for your home. It is a report generated by a real estate agent.

That report is called a Comparative Market Analysis or a CMA.

A CMA in real estate is a report estimating the price your home will most likely sell for by comparing your home (the subject property) to similar homes that have sold in the last few months in the surrounding area (comparable homes of comps).

So pricing your home correctly starts with data. What does a seller need to know about a comparative market analysis.

A Good Listing Agent Will Provide A CMA

A quality, experienced listing agent will provide you with a CMA and explain how and why they did what they did to arrive at a price for your home.

Be wary of an agent that just gives you what you want to hear and doesn’t back it up with market data. There is a method for getting the right price and there should be data to support a price for your home.  

Don’t be afraid to ask questions and spend time reviewing the CMA data with your listing agent. 

What Makes A Good Comp?

One area of confusion for many home sellers is what makes a good comp or comparable home. There can be much subjectivity in choosing the comps for your CMA. But there are some basics to keep in mind. A good comparable home should be:

Sold in the recent past- no more than 6 months.  
In the same neighborhood or a similar neighborhood.
Of similar size, no more or less than 20% of the subject property.
Similar in room count including the number of bedrooms and bathrooms.
Comparable homes should also be of:
similar age
similar style
similar condition
similar construction quality
have similar amenities. such as central air, decks, patios, sprinkler systems, etc…
Any homes outside those parameters will lead to a skewed report.  Often a seller will want their home to be worth more than it is and reach for a higher number by using homes that are good comps.

Common Errors Sellers Will Make When Choosing Comps

Comparing a neighbors home that sold 3 years ago.
Using a colonial as a comp for a slit level.
Thinking a 350 m² home can be compared to a 150 m² home.
Comparing new construction to one built in the 70’s.
Knowing what can be used as living surface as opposed to total surface is another important matter.
Exceptions Can Be Made

In a perfect world, it would be great if you can find 3 identical homes in the same neighborhood with the same yard and view. But that rarely does it happen. 

Exceptions can be made at the real estate agent’s discretion that adjust a comparable home to make the comp come inline with the subject property. For example, a very similar comp may have a one-car garage where yours doesn’t. 

In this instance, a slight price adjustment would be made for the one-car garage. Or, a nearly identical home sold two doors down but it sold 9 months ago rather than fall inside the 6 month mark.

One Home Doesn’t Make A CMA

A CMA report is made up of several homes. At a bare minimum 3 should be used, but an agent can certainly use more.  

One big mistake sellers make is pricing their home on one outlying home that is priced outside the other comps. But of course as a seller you love a higher price.

That is why it is important to use at least 3 homes for your CMA. A real estate agent will average the adjusted prices to give you the most likely selling price of your home. You have to look at pricing your home holistically.

Fair Market Value Is A Range

Often a home seller will get stuck on one number and one number only as a price for their house. And, that number is usually the highest that an agent may be able to justify.

Because each home and location is different getting the exact price is difficult. 

In the end, there will be a range of pricing to keep in mind. It is usually within a 5-10% bracket. 

Don’t get stuck on one number, be flexible. I am not saying give away your home but if you are reasonably close to your asking price don’t lose an offer over €5.000 if it falls in the range of fair market value.

The Value of A Home Changes

Technically a value ascertained by an appraisal or a comparative market analysis is good for the day it is done. Real estate markets go up and down and your homes value will rise and fall with the market.

If you had an appraisal or a CMA done a year and a half ago, that value is probably not valid. Practically speaking values don’t change much day to day. But 3 months of a rapidly rising or falling markets can make a big difference. 

Get rid of any old values you have in your head and pay attention to today’s value.

Banks have a say

Careful not to overvalue your home as some banks tend not to be willing to lend out money if they believe the house is not worth the asking price. 

Online Comparative Analysis

Automated value models you can find online, that return the value of your home by filling out a simple form do not replace a CMA.

They’re always just a compromise.

Do not replace a CMA with such an automated tool.

The comparative market analysis is a crucial piece of data not only to determine a list price for your home but also to help you evaluate offers as they come in. 

It is important to carefully review the CMA data upfront so you have an understanding of what the value of your home is in the current marketplace. 

Once you listed and your home has been on the market without an offer it is important for you and your agent to relook at the data and possibly adjust based on sales that have occurred since you listed your home.

--> Need help with your project? Call me up: Marco Kasel +352 621 835 778

REASONS YOU SHOULD CONSIDER SELLING THIS FALL

If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate sellers’ market we’re in today won’t last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.

Your House Will Likely Sell Quickly

In today’s market, homes that are prized right, sell quickly. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.

2. Buyers Are Willing To Compete for Your House

In addition to selling quickly, homes are receiving multiple offers. Multiple offers mean strong negotiating power which is going to help you achieve the best possible sales price.

3. When Supply Is Low, Your House Is in the Spotlight

Coming out of the summer vacation, many homes have not yet made it to market. If you take advantage of this and list now, your home is easier to find among all ads and it’ll be in the spotlight.

4. If You’re Thinking of Moving Up, Now May Be the Time

If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through growing equity. You can leverage that equity, plus current low mortgage rates, to power your move now.

The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season.

If you’re thinking of making a move, call me up so we can see if it makes sense for you to get into a new home.

--> Marco Kasel +352 621 835 778 <--

- Je parle le français 🇫🇷
- I speak English 🇬🇧
- Ich spreche Deutsch 🇩🇪
- Ech schwätzen och Lëtzebuergesch 🇱🇺
...

REASONS YOU SHOULD CONSIDER SELLING THIS FALL

If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate sellers’ market we’re in today won’t last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.

Your House Will Likely Sell Quickly

In today’s market, homes that are prized right, sell quickly. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.

2. Buyers Are Willing To Compete for Your House

In addition to selling quickly, homes are receiving multiple offers. Multiple offers mean strong negotiating power which is going to help you achieve the best possible sales price.

3. When Supply Is Low, Your House Is in the Spotlight

Coming out of the summer vacation, many homes have not yet made it to market. If you take advantage of this and list now, your home is easier to find among all ads and it’ll be in the spotlight.

4. If You’re Thinking of Moving Up, Now May Be the Time

If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through growing equity. You can leverage that equity, plus current low mortgage rates, to power your move now.

The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season.

If you’re thinking of making a move, call me up so we can see if it makes sense for you to get into a new home.

--> Marco Kasel +352 621 835 778

Yet another apartment rented. Welcome home to the new tenant.

--> Need help with your real estate project? Call me up: Marco Kasel +352 621 835 778 <--

- Je parle le français 🇫🇷
- I speak English 🇬🇧
- Ich spreche Deutsch 🇩🇪
- Ech schwätzen och Lëtzebuergesch 🇱🇺
...

Yet another apartment rented. Welcome home to the new tenant. 

--> Need help with your real estate project? Call me up: Marco Kasel +352 621 835 778

Looking for a new, furnished apartment on the ground floor of a new apartment building in Hollerich? Look no further.

The 60 m² apartment is laid out as follows:

- Living room (~ 24 m²)
- Open kitchen (7 m²)
- Bedroom (14.2 m²)
- Hall (10 m²)
- Shower room (4 m²)
- Storage room (1.5 m²)

There’s also a 15 m² terrace, as well as a cellar (3.8 m²) and an indoor parking space.

High-end finishes: floor heating, triple glazed windows, elevator, laundry room, electric shutters, video intercom, alarm and security door.

--> Interested? Call me up: Marco Kasel +352 621 835 778 <--

- Je parle le français 🇫🇷
- I speak English 🇬🇧
- Ich spreche Deutsch 🇩🇪
- Ech schwätzen och Lëtzebuergesch 🇱🇺
...

Load more

Recent Comments | Commentaires Récents

    Categories | Catégories