Setting the right price from the start is probably the most important thing when it comes to successfully selling your home. This requires taking a close look at what other houses are selling for that are similar to your home. No matter how priceless your remodeled kitchen or updated bathrooms are, the market sets a value—the price a ready buyer is willing to pay.
One of the key ways to compare your house to others on the market is to look at a comparative market analysis, or “CMA.”
A comparative market analysis is a report, usually done by a real estate professional. A CMA gives you information about houses similar to yours (in size, amenities, and location) that are either on the market, have sold, or are currently in contract (pending sale). A good CMA can tell you:
- What homes like yours are actually selling for
- How long it’s taking for them to sell, and
- What their sale prices are in relation to their list prices (the difference between what people actually got for their house and what they asked for).