Premier Magazine Premier Magazine July 2018 | Page 20

ask
Adrienne
What is a CMA, or comparative
market analysis?
Aside from the CMA, how do you go
about setting a price for a home? 
Why can’t I just put a high price
on my home, and if it doesn’t sell
within the first six weeks or so,
reduce that price?
This is certainly an option, but it is not something
I personally advise my clients to do. Overpricing
your house can impact the sale price greatly later.
As I mentioned above, lowering the price also gives
a buyer the perception that something is wrong
This is an analysis of the value of your home. A Realtor® Obviously, the seller never wants to leave any money with the home. I strongly advise to never fall into
(or sometimes an appraiser) will look at similar homes on the table, and the buyer wants to get a good deal. that situation. Again, an agent that is experienced
that are currently for sale, have sold, or even have failed This is where your professional real estate agent comes in your market will know what your home is worth
to sell recently in the area. From there, the agent/appraiser in to determine a price that could meet both objectives. and how to price it. The highest level of interest will
will come up with a price on your home.  The price is determined by the market and what a buyer be generated when a property is first listed. Over time,
is willing to pay for your home. Today buyers are aware interest dramatically reduces.
In some cases, this can be a fairly easy task…like in the case of home values due in large part to the Internet and
of a planned community. Planned communities typically have information of similar homes right at your fingertips.
many floor plans to choose from. When trying to price With a simple Google search, you can figure out the
a home, you simply go back and look at the most recent sale price per square foot and average home price in any
of that floor plan. Of course, you also consider the location neighborhood. However, at the end of the day, a home
within the community, etc. In other cases, like Corona del Mar, is worth what a buyer is willing to pay for it.
each home has its own specific nuances. Every street
of the Village and these nuances.
In general, a CMA looks at similar homes to get a clear
picture of how the market has valued homes that are
comparable to yours. The aim of the CMA is to achieve the
maximum selling price within a relatively short period of time.
I know I preach this all the time, but staging, staging,
staging. Your home needs to look impersonal so the buyer
has advantages and perhaps disadvantages, so coming
up with an accurate CMA requires an in-depth knowledge
What can I do to make my home
more attractive to buyers?
What do you mean when you talk
about “chasing the market”?
can picture themselves in the home. Additionally,
it needs to be very sparse, creating a non-lived-in look.
If you go to a model home in a new development,
you will see that the homes are minimalistic, fresh, clean,
This is the result of overpricing your home. If your home and inviting. I know it’s not realistic to live this way 24/7,
is overpriced and sits on the market for an extended but it’s very important, especially for photographs
period, the perception of the buyer is that something and video. Additionally, you want to fix any repairs that
is wrong with the home. An agent will give you an average are needed in the home, freshen up the landscaping
amount of time known as “days on the market” that and exterior, and keep the home tidy for showings.
a home at your price point would sell for. If your home
sits for much longer than that, it will go down in value,
which is called “chasing the market.”
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