There are probably few things in life as exciting, or as nerve-racking, as the decision to purchase a home. This is a normal reaction, and is found in seasoned as well as first-time homebuyers.
Your agent can assist by providing objective information and valuable data as you enter this critical and emotional home-buying stage. The first step is to determine the fair market value of the home with a Comparative Market Analysis (CMA).
Comparative Market Analysis (CMA)
What's in a CMA? Generally, information contained in a CMA includes market data around active, pending, and sold homes similar to a subject property.
Active Listings.
Having recently been a participant in the marketplace, you are probably familiar with many of the comparable homes for sale. This fact alone has taught you what is available in your price range and area.
Pending Sales.
These are homes that are currently under contract but not yet closed. While insightful, the final sale price is not disclosed prior to the closing and left to speculation.
Recently Sold Homes
It is primarily sold properties that you need to be concerned with, since they provide the actual data you need to determine fair market value.
Along with the CMA, your agent can supply other details about the home you are considering, including (but not limited to):
Court House Tax Records. Contains square footage, the price the current owners paid and the amount of property taxes and assessments, if any.
Sales History. How long has the property been on the market? Has it expired and been relisted?
Neighborhood Analysis. Looking back several years will indicate if home prices are steady, declining, or increasing.
Keep in mind that no two properties are exactly alike. Using the available data on a variety of comparable homes, we add and subtract for differences to arrive at an average or median sale price. This is not an exact science, but by using this process it is possible to arrive at a fairly accurate estimate of value.
To help you choose a home, your agent will...
Discuss with you the benefits and drawbacks of each home in relation to your specific needs.
Research any unanswered questions and provide you with data regarding the recent sale prices of comparable homes in the neighborhood of your choice.
Provide you the additional information necessary for you to make a decision, including but not limited to tax records, sales history, and a neighborhood analysis.
What does a licensed agent bring to the table?
The short answer is: extensive experience in our market. The long answer can be found in this guide. By understanding the ins and outs, you can feel even more confident in how to choose a real estate agent who's right for you. Search our agent directory or contact a Sibcy Cline office near you to connect with agents in your market.
