Getting Ready to Sell? Why A Comparative Market Analysis Is Crucial

Spring is a popular season for homeowners to list their properties for sale. If you are considering listing your home this spring, this is an opportune time to do your research and ensure a successful start.  After spending many years studying the local area market, comparing it with the national market, and reviewing recent sales data, I have come to understand the importance of pricing a home correctly from the start. In this blog, we will look deeper into why a Comparative Market Analysis (CMA) is vital when setting the selling price for a home.

When it comes to pricing, myriad opinions abound, yet only factual evidence truly carries weight.  Collaborating closely with clients, I prioritize examining concrete data to formulate the most effective pricing strategy aimed at maximizing returns. Pricing can be fluid, necessitating a keen awareness of market dynamics and trends—whether they're inclining, declining, or holding steady.

Ultimately, a home's price is dictated by the price that a buyer is willing to pay. Thus, it's paramount for me to uncover precisely what buyers are currently valuing similar properties at, ensuring alignment with my client's expectations.

In my practice, I use a large pool of information to determine what buyers are currently willing to pay for a home. By also looking at the market trends, I can work with my clients to determine whether it makes more sense to sell now or to wait.

Comparative Market Analysis

A Comparative Market Analysis, CMA for short, is a beneficial tool that I use to determine what the market is saying. The CMA is a side-by-side comparison report of homes currently for sale and homes that have SOLD in the same neighborhood or area as yours. I will typically include new listings (for sale), pending sales (under contract), closed sales (solds), and expired listings (failed to sell).

CMAs can vary widely depending on the knowledge, skill level, and experience of the agent inputting the search parameters, as well as the data fields that are chosen. This is a delicate and critical job that will help a seller achieve maximum success. You do not want to trust getting this information from the wrong agent, and you certainly don’t want to trust an online source that spits out un-scrubbed and unverified data.

Because I work and live in the local area, I have had the opportunity to become intimately familiar with our neighborhoods in the Truckee Meadows.

So what does that mean for you? That means that every week I am gaining more experience that I can put to work for my clients. This puts me in the best position to help educate my clients on what the market is doing, how the market is trending, and how to get the most for their home in the least amount of time. Achieving these kinds of results does not happen by chance. I am very purposeful about achieving the successful sale of every home I list. I also want to net my clients more than they would get by listing with anyone else.

Creating a Comparative Market Analysis

To get the most accurate pricing data and net my clients the most money, I use the industry's most sophisticated software systems. When building a client’s CMA, I endeavor to use comparables from the surrounding neighborhood. Additionally, I also pull a report of every home that SOLD on a client’s street in the past year so that I can review some specific trending data. I examine the data using my experience and take the following factors into consideration:

• Size - Generally speaking I try to keep the comparable properties to within 10 percent of the size of my client’s home.
• Age - When aggregating the data, I will endeavor to select comparables that were built the same year as my client’s home, or within just a few years.
• Other Details - There are quite a few other parameters that I search through to get the most accurate results, including the number of bedrooms, bathrooms, garage spaces, living areas, number of stories, and more.

After I compile and aggregate the data, I painstakingly go through each comparable property and review the photographs and property descriptions. This helps me assess the condition of each property to see if they are aesthetically and physically comparable with my client’s home. This exercise helps me better drill down and select the best comparables. I will sometimes drive through my client’s neighborhood and make a visual analysis of comparable homes.

Analyzing the Details

Once I have completed a CMA, the next step is for us to analyze and review the data together with my client. Then together we can take the critical step of setting the selling price. When it comes to pricing, market trends are constantly changing. Working with the wrong agent will cost you time, and aggravation and you could be leaving money on the table.

Tips like this and many more can be found in my e-book, The Essential Handbook for Selling Your Home. For a free, no-obligation copy please email me or send give me a call at (775) 525-0309.

About Our Team

The Angst Real Estate Team is the top real estate authority in Northern Nevada and is always available to answer your real estate questions. Send us an email or call/text at (775) 525-0309 for a free, no-obligation consultation. Like and subscribe to our YouTube Channel. The Angst Real Estate Team is the top real estate authority in Northern Nevada. Our channel is the place to go when you're looking for information about our dynamic and diverse Reno/Sparks Real Estate Market. We frequent video podcasts about important topics that matter to our Reno/Sparks Real Estate Tribe. Let's embark on this real estate journey together!

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