Seller's Competitive Market Analysis

In order to get their foot in a prospective Seller's door, many real estate agents offer free Competitive or Comparable Market Analysis Reports (CMA) that help to determine house values. Sometimes these reports are no more than a list of recent sales and lead to a pressure packed listing presentation.  At Glenn Hoover Real Estate Services South Florida, LLC we take a different approach.  But first let’s see what a good Competitive Market Analysis report is all about.

Elements of a Competitive Market Analysis (CMA)

A CMA starts with a detailed analysis of the Seller’s property. Information is obtained from a physical inspection of the property and public records. This is necessary so that the agent can make appropriate adjustments to comparative house values.

Most importantly a CMA will contain a list of recently sold homes in the neighborhood that are similar in house size, lot size, condition, age and construction. Ideally the comparable home will be less than a half mile away and sold within the last six months. This can be difficult in today’s Buyers Market.

A full Comparative Market Analysis will also include active listings (houses currently on the market), pending sales (houses under contract but not closed) and expired, withdrawn or cancelled listings (houses that have not sold and removed from the market). Although this information can be useful in determining neighborhood market trends, it is not as important as the data obtained from properly adjusted actual home sales.

Opinion of Value

A professional real estate broker will review the CMA, factor in current real estate market trends and offer the Seller an opinion of value. Sellers should question the agent about methods used and look carefully at the competitive properties listed in the report. The Seller may have information about local homes not available to the agent. Sharing this information can make for a better opinion of value.

Sellers need to put on a Buyer’s hat and understand that in today’s Buyer’s Market, it doesn’t matter how much the Seller thinks their house is worth. The Buyer will determine the house value. Sellers should look objectively at the Competitive Market Analysis and beware of the real estate agent presenting a high price opinion in order to get the listing.

Agreeing on the Value of a House

New home listings get stale quickly. Pricing a home high with the idea of dropping the price if it doesn’t sell is a bad strategy. The house should be priced to sell now. Sellers must consider the expenses that will continue to accrue while the house sits on the market.

As a Seller's Agent we will provide the Seller with experienced based advice to guide them in this most important decision. If we cannot agree on a listing price that will attract serious Buyers, we will not take the listing. We don’t want a disappointed Seller because their house does not sell.

Free List of Recent Sales

Some home owners may not be sure that they want to sell but would like to see what homes are selling for in their neighborhood. This does not take long and we are glad to provide this information on a complimentary basis. Home owners can complete our contact form and note they would like a free List of Recent Sales in the neighborhood.

Full Competitive Market Analysis

At Glenn Hoover Real Estate Services, with the exception of old friends and past clients, we do not offer a free Comparative Market Analysis. We will prepare a professional residential CMA for $75. It includes a personal preview of the Seller’s home and a face-to-face presentation of the final report. If a Listing Agreement is signed within 7 days of the presentation, we return the check.

Click on the attachment below for a sample of a full Competitive Market Analysis from Glenn Hoover Real Estate Services South Florida, LLC.

File Type	Attachment	Size
	Sample CMA	871.47 KB