Do you even need a CMA ?
If you’re looking to move from your current home and you’ve spoken with a real estate agent, than you’ve probably been told that you need a CMA and they’re going to give it to you for FREE!!!
So, what is a typical CMA and why don’t I feel it’s a reliable source when determining the price of your property when you’re ready to sell here? A CMA as most people define it as stands for “Comparative Market Analysis”. This is normally a computer generated report averaging recent sales in your market area that closest match your square footage, bedrooms, bathrooms… The challenge with using this method is that it misses a lot of the factors in the Denver Metro and Surrounding areas that make your home sell. It forgets to consider things like views, finishes, types of sale Inventory, competition, upcoming appraisals, the new Wal-Mart moving in, New Build or Re-sale, Area Market Conditions, Days on Market and so on…
It’s like calling a Doctor and and telling them your symptoms over the phone without any exam and having them diagnose you (without even seeing you). Does this make any sense to you?
Some will do something called “the two part”, where they visit the first time without any intention of giving you a price (even though that’s why they’re supposed to be visiting). They tell you they’re going to run numbers and send you a CMA… Same thing most likely, just now you’ve invested even more time with them for the same results. They feel like if you could just meet them, than they may have a chance at the popularity contest.
This is my biased opinion and commentary:
A sales price should be something that’s agreed upon after you’ve been adequately educated on YOUR current market conditions and sales criteria. There isn’t a silver bullet and the crystal ball is in the shop! This should be followed by a sales strategy (a game plan), that you can rely on through the process to get the job DONE!
With our team, we don’t just plug you into a system and see what it spits out. We have a formula for making sure you are in position to get TOP DOLLAR$ for your investment. This formula is tailored to each piece of property and individual circumstance as we recognize that (even if it’s cookie cutter) each piece of property/sale is unique and possess it’s own distinct criteria. We factor in the who, what, why, where and the how of each property. Identifying key components to ensure we’re doing the best job for you every step of the way!
Just because a home sold at $500k, doesn’t mean that’s what it was worth. It’s only the amount the buyer and seller mutually agreed on for THAT transaction. It doesn’t show you how long they were on the market or that it was over/under improved. It doesn’t even consider the size of the lot in most situations.
Why is this so important? It’s vital, because that is your money on the table, that is your personal nest egg, your kids college funds or retirement money we’re talking about. If you want a quick and dirty snapshot, you can go here to see your “CMA” home valuation (www.brandon.structurecolorado.com/home-valuation/). We give you this tool that most Real Estate “professionals” for FREE too and you don’t even have to talk to me. If you want to make sure you’re actually getting the value that’s right for your home and you’re serious about SELLING your property VS. putting it on the market, than you want to talk to us first. We have not interest in blowing smoke up your rear and we understand that you’re not using us just to plug your house into MLS, pound a sign in your yard and make some pretty flyers with pictures.
Do we still “Click bait” you with things like “Get Your Free CMA“, “What’s Your Home Worth“, “Free Market Valuation“? Of course and they ALL go to the same place! You’ve been trained by online marketing that these are the things you should be looking for. Huge companies (like Zillow.com, trulia.com, Realtor.com) spend big money to make sure you’re clicking on their national links, so they can turn around and sell your info to the highest real estate agent bidder in your area. The problem is that most of these are blacklisted from our local MLS system and have inaccurate info based off of a “one size fits all” model.
Our objective is to help educate you, once you’ve decided you want to sell. To make sure you get the most amount of $$$, In the least amount of TI:ME, With the fewest hassles. We recognize the CMA is NOT the tool to do that.
Ultimately in this environment, nobody is doing you a service if they’re bringing a “CMA” and telling you that the price should be x based off of this document. You want someone in the game or else you’d go out and sell it on your own (we have cheap marketing kits for that). You want a professional that’s excited about making you succeed first, because they understand the benefit and importance of the relationship over making a buck for 5 minutes of time.
Author: Brandon Rossell