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Why Should You Take CMAs with a Grain of Salt?



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Today, I want to discuss one of the most important aspects of the selling process: determining a list price.

A lot of agents will do a CMA, a competitive market analysis, as this is something agents are taught on their first day. With an ever-changing market, like the one we have in our area, it's important not to rely too heavily on a CMA. It will only give you a ballpark estimate of the home value because it doesn't consider the condition in which comparable homes were sold. CMAs just don't look into the details that can really affect a home's value.


In this market, you need to factor in the supply and demand. If you have a home with a pool, in the $300k-$400k price range, it may not be the best decision to try to sell if there are other homes in your price range on the market that also have pools. It's crucial to remember that there are better times and worse times to list a property!

A good agent is going to look at how many homes have sold in the last 90 days, how many homes failed to sell, how many homes are active, and how many homes are coming on the market per month to come up with percentages. At that point, your agent should be able to determine how much inventory there is, how much the market can absorb, and, ultimately, what price is the right price for your home in the given market. That price is going to play a huge role in how quickly your home sells!

Bottom line: be careful about CMAs! If you want the best results when selling, you need to work with someone who is going to go the extra mile to put the proper price on your home. If you have any questions about how we can do this for you, or if you need real estate assistance of any kind, don't hesitate to give us a call or shoot us an email. We would love to hear from you!

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