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CMA’s and Pricing Your Home Appropriately

A Comparative Market Evaluation (CMA) is a report that a Realtor puts together to discover what a home might sell for in the current real estate market by comparing recent, comparable, sold listings in a given area.  It is not an exact science, but it certainly helps to ascertain a price range that a prudent buyer might be willing to accept.  After all, that is the goal of selling!

Many things can affect a CMA for one's home.  This can include the number of bedrooms and bathrooms, the interior finishings such as flooring, kitchen cabinetry and counters, exterior finishes, landscaping.  Perhaps some of the biggest factors are the one's you cannot change such as the lot size and location including the view, and the above grade square footage within the home itself.  These are all things that a Realtor must take into consideration.  Yes, nice finishings are important, but if the location and lot size or the footprint of the home is not reflective of the price, then one shouldn't overprice your home for the neighbourhood based on your finishings alone.  You might have to accept that it's not worth what you think it's worth.  On the other hand if all of the above is present and the neighbourhood demands nice finishings and you don't have them, then it will also be reflected in the sales price.  Putting together a CMA requires a gentle balance of both science and art in order to price your home appropriately. 

All of us find great value in our homes.  Remember to be reasonable a compare properly.  This is what your Realtor can do for you with a good CMA.  Thanks for reading!

By Patrick Murray