Pocono Home Source's Sellers Area "Whats a CMA?"

The length of time that a home may be on the market is parlty based on the listing price. It is the seller’s job to determine the listing price of their home, but it is my job as your real estate professional to make sure you reached your selling price with the knowlege and information you needed to make an educated and realistic decision.

Pocono CMA (Comparative Market Analysis)

A CMA is in some ways, similar to an appraisal, but it is important to know that it is NOT an appraisal. An appraiser's job is to estimate a properties value usually for a lender to help determine a figure for a loan amount. A CMA is a detailed market analysis referencing the sales prices of similar homes, we call this a market analysis. This will help sellers to determine a competitive and realistic price for their home.

It is important to know that buyers set the value of homes in most markets, what people are willing to pay for a particular piece of property, in the end, is its market value; it is not always specific qualities that make a home valuable. There are many factors that come into play such as: Financing terms, interest rates, insurance costs, tax consequences and more help determine home prices. When interest rates go up, the cost of purchasing a home also goes up, this reduces the amount of home buyers can afford to pay for a particular home.

There are several factors that help determine a properties value

1. Ratio of home owners to renters can efect values. Is there a large amount of owner-occupied properties or do rentals out number the area?

2. Vacant Homes and Lots can cause a bad impression. A considerable amount of unoccupied homes can make an area appear to be of low interest, this can lower the value of properties in that region.

3. Changes in the use of the land in an area can cause price fluctuations. Is the neighborhood changing from primarily a residential area to more of a commercial use? If this is the case properties may lose their value.

4. Does the area have all the desired utilities? Natural gas, septic or sewer lines, electricity, cable television and high speed internet.

5. High winds and traffic noises can lower the interest of home buyers to purchase in a particular area as can odors, and industrial noises.

6. Is the area considered prestigious? Does it have high valued homes in comparison to others neighborhoods? Does the school system have good reputations in the area?

7. The layout, shape, and size of a lot can cause negative or positive adjustments in pricing a property. Are the lot measurements conforming to the home? How many feet of road frontage does the property contain? Does the home border any bodies of water such as a creek or lake? How deep is the lot? Is the topography flat or hilly?

8. The quality of the buildidng materials can play a significant role in determining value. Is the quality of the home materials poor, average or high? Where hardwood floors, ceramic tiles, or high quality lighting fixtures used?

9. Condition and age need to be considered. How old is the home? What is the over all condition of the home and property?

10. The size of a home is usally directy related to its value. The size of the home includes the garage, living space, basements and possibly the porches. But square footage is usually based on living space.

11. The number of bedrooms and bathrooms in a home has a big impact on value. A full bathroom has a toilet, sink and bathtub; a ¾ bathroom consists of a toilet, sink and shower only; a half bath contains a toilet and sink only.

12. The type of heating as well as having a air conditioning system can effect home values. In hot areas an air conditioner or central air system is of high value and can raise the maket value of a home. Central heat and energy efficient heater systems are considered valuable additions in cooler areas.

13. Homes with garages and/or carports have an aded value. An attached garage is of great importance to many buyers as well as the amount of cars it can house. Is there storage space? If no garage is available, is the carport covered? Is there room on the property to add a garage?

14. The layout of a home is also very important. Many buyers are looking for open floor plans that seem very well layed out. Is the floorplan of the home functional? Does the home have enough closets? Is there an eat-in kitchen or a formal dinning room? Are there enough doors to the outside of the home? How large are the rooms and living spaces?

An effective and professional CMA should consist of an initial pre-view of the home and consultation. Then a follow-up appointment should be conducted to discuss the CMA and value findings. Your real estate agent will review the analysis in detail and suggest an estimated market value or range of value of your property. Then together, an accurate listing price can be concluded through market education and statistics.

Sellers Links

•Home Page
•Sellers Area
•What's My Home Worth?
•What's a CMA?
•Marketing Plan
•Preparing Your Home