Comparative Market Analysis Explanation

The Comparative Market Analysis (CMA) will match comparable properties that closely match your property's characteristics.  These comparable properties will help to find a fair market value for your property and help you decide on the proper listing price for your home.

FAIR MARKET VALUE HAS BEEN DEFINED AS:  the highest price estimated in terms of money which the property will bring when the proeprty is exposed for sale in the open market by a willing seller, allowing time to find a willing buyer, neither buyer nor seller acting under compulsion, both having full knowledge of all the uses and purposes to which the property is adapted and for which is capable of being used.

This market value definition presupposes perfect knowledge on the part of the buyer and seller.  Since this perfect world rarely exists, our estimate of price is generally indicated as a range.

Because no two properties are exactly alike, each comparable property must be analyzed for differences and similarities between it and your home.  The principle factors for which adjustments must be made include financial concessions, condition of sale, date of sale, location, physicial features and amenities.

The CMA provided by the Rama Mehra Team contains data that was researched from the reliable information currently available from the local association of REALTORS®.  Some online sources use data from the property tax records, but that does not give you accurate information as the tax records don't provide full information, especially with transfers between family members.  I rely soley on reliable information from my local association of REALTORS®.

The estimated value range that I will provide for your property does not mean that the sale of the property could not occur at a higher price.  The price you ultimately receive, of course, will depend upon your motivation, the motivation of the buyer and the market conditions at the time the offers are received.

Did you know that location is the single greatest factor affecting your homes value?  Location is the one factor that you cannot control, the effects of a negative location can be compensated by price.  For example, if you have two idential new homes, and one is near a railroad track, the problem of the railroad can be offset by a lower price.

Did you know that market conditions cannot be manipulated?  Your home will either be in a seller's market, buyer's market or a neutral market.  The timing of your home sale will effect your home sale, some months of the year have greater activity than other months.  We will go over market conditions & trends when we have a free consultation with you.

Did you know the terms under which you are willing to sell will also effect your homes value?  Are you willing to pay part of the buyers closing costs?  Are you including all the kitchen appliances?  Are you including the washer & dryer?  When will you provide occupancy, do you need a rent back?  Are there other items you will include or exclude with the sale of your home?

As you can see, there is a lot to think about and discuss when you start the process of considering to sell your home.  My free consultation will go over these questions and the CMA I provided and will help guide you through the process of selling your home.  Give me a call today, at (925) 415-0835 to schedule your free consultation.


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