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A Comparative Market Analysis (CMA) provides sales information
on similar homes in your neighborhood or area. CMA results
can help prevent your home from being overpriced. An
overpriced home is harder to sell—if it sells at all.
Homeowners often ask for more than what their home
is worth for the following reasons:
- Home improvements
- Ignoring the CMA data
- High original purchase price
- Financial needs of the owner
Homeowners making major home improvements without
the benefit of a Comparative Market Analysis (CMA), risk
increasing the value of their home beyond the acceptable
price range of neighboring homes. It is hard to
sell a home whose fair market value is much higher than
neighboring
homes
because
most buyers won't risk not being able to sell the home
later. Over improving a home rarely works out for the
best unless other neighboring homeowners
make similar renovations or there are compelling reasons
for
a buyer to purchase the home.
Homes that are overpriced are also extremely hard to
sell because their value doesn't match the asking price.
People overprice their homes for a variety of reasons.
Sometimes,
homeowners overprice because of their emotional involvement
in the home—they know how much work and love they
put into the home over the years and wish to recoup their
time, money, and effort. Overpricing may also occurs
when the homeowners are oblivious to the acceptable
price range for their home. In both cases, if the homeowners
can be brought around to accept what is a fair
price for their home, their homes will eventually sell.
The home that is least likely to sell is the home that
is overpriced because of financial debt. Homeowners trying
to pay off their debts by overpricing their homes are
not likely to sell in a reasonable amount of time if
at all.
To improve your chances of quickly selling your home,
pay attention to the CMA your real estate agent provides.
If you ignore their advice and insist on overpricing
your home, don't be surprised if your home sits on the
market longer than normal or doesn't sale at all.
Send me a CMA!
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