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Competitive Market Analysis

A good Realtor's competitive market analysis (CMA) is thought to be the next best thing to an actual appraisal and can be a huge factor in helping you know how to properly price your home for sale. Although a CMA is not acceptable to a buyer's lender in lieu of an actual appraisal, a knowledgeable Realtor looks at more than just the county property records an appraiser uses, factoring in any area or community attributes that might affect your property's value.

A CMA is an assessment of the property's current market value. To arrive at the dollar value (usually stated as a range-of-value), we use both Active and Sold comparable properties, typically three of each, that are most like your property in size, age, conditions, location, etc...

For the Sold "comps", our team focuses on the most recently closed and will not use sold properties that have closed in more than twelve months of the CMA date, as an appraiser would. Comps no older than six months are preferred and the best comps come you're your own neighborhood. If enough applicable comps are not available in your neighborhood, we will search for the nearest comparable neighborhood (or area if your home is not in a subdivision) to locate the comps. Pending or Under Contract comps can also be used as Active's, since the Realtor typically does not know what the sales price of a property is until it closes (unless it is their listing).

Our team makes adjustments to the comparable properties based on the attributes it possesses in comparison to your home. For example, if your property has a two-car garage and the comp has a one-car garage, we would subtract a certain value from the comp (a value-adjustment). The amount of these adjustments will vary from area-to-area and sometimes from community-to-community. A good Realtor will know what the average prices per-square-foot are for making adjustments, lot values, capital improvement of special features values (like garages, screened-porches, decks, lot size, age, condition, etc...) and the adjustments are all calculated for each group of comps (Active and Sold). The standard wisdom is that the comps having the least amount of adjustments are the best comps. In this scenario, we can focus mostly on one or two comps in arriving at our best opinion of value and use the second or third comp to support our position to help you determine how to price your home for sale.

Your goals and preferences are also important factors in setting the price. For example, if you want the property sold in sixty days and the average time on the market in your neighborhood is ninety, then the price will trend closer to the lower end of the value-range. Whatever the case, the list price is typically set slightly above the expected sales price. Whenever possible, however, it is always best to "price the property to sell". This means that the listing price should be attractive enough to the available field of buyers or new buyers entering the Greenville market that an solid offer will arrive reasonably fast (typically within the first 30-days) and little or no price negotiation will ne necessary to produce a signed contract. Overpricing a property is not in your best interest any more than underpricing would be. Getting you the best price possible is the purpose of the CMA – the best terms and conditions can be managed by our Realtor team once an offer is made.

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