Comments on: Comparative Market Analysis: How Much is Your Home Worth? (Infographic) http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/ The Lighter Side of Real Estate Fri, 17 May 2013 18:45:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kieran M. Jackson, REALTOR, SFR http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5953 Kieran M. Jackson, REALTOR, SFR Fri, 13 Jul 2012 00:22:03 +0000 http://www.movoto.com/blog/?p=5907#comment-5953 An interesting point to be made is that, mortgage lenders tend to weigh heavily on professional appraisals. There is a HUGE difference between an appraisal, and a CMA! An appraisal relies on a study of what's to come in the future. Sounds like Nostradamus to me. The CMA however, bases the value of any given property on what the latest buyers have willingly paid for comparable real estate. This is a much more reliable dynamic, in my personal opinion. What do you all think? All the best, Kieran Jackson Keller Williams Hollywood Hills An interesting point to be made is that, mortgage lenders tend to weigh heavily on professional appraisals. There is a HUGE difference between an appraisal, and a CMA!

An appraisal relies on a study of what’s to come in the future. Sounds like Nostradamus to me.

The CMA however, bases the value of any given property on what the latest buyers have willingly paid for comparable real estate. This is a much more reliable dynamic, in my personal opinion.

What do you all think?

All the best,
Kieran Jackson
Keller Williams Hollywood Hills

]]> By: Larry http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5512 Larry Fri, 15 Jun 2012 20:12:58 +0000 http://www.movoto.com/blog/?p=5907#comment-5512 I absolutely AGREE! CMA should include ALL recent sold properties because REO & Short Sales do have an effect on current market prices unless of course your an Ostrich with it's head in a hole. I absolutely AGREE! CMA should include ALL recent sold properties because REO & Short Sales do have an effect on current market prices unless of course your an Ostrich with it’s head in a hole.

]]> By: Lizardo Garcia http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5511 Lizardo Garcia Fri, 15 Jun 2012 18:54:44 +0000 http://www.movoto.com/blog/?p=5907#comment-5511 The fact is that in today’s real estate market, we need to include Short Sales and REOs, otherwise, we would not have an accurate CMA and be able to recommend the sales price to our clients. Besides, most of the banks are getting an appraisal done before they accept any offers in a short sale and a similar procedure for the REOs. The fact is that in today’s real estate market, we need to include Short Sales and REOs, otherwise, we would not have an accurate CMA and be able to recommend the sales price to our clients. Besides, most of the banks are getting an appraisal done before they accept any offers in a short sale and a similar procedure for the REOs.

]]> By: James Colin Campbell http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5509 James Colin Campbell Fri, 15 Jun 2012 18:28:38 +0000 http://www.movoto.com/blog/?p=5907#comment-5509 excellent article about CMA excellent article about CMA

]]> By: Chris Leach http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5507 Chris Leach Fri, 15 Jun 2012 17:33:32 +0000 http://www.movoto.com/blog/?p=5907#comment-5507 In today’s real estate market, we need to include Short Sales and REOs, otherwise, we would not have many comparables to have an accurate CMA and recommend the purchase price to our clients. In today’s real estate market, we need to include Short Sales and REOs, otherwise, we would not have many comparables to have an accurate CMA and recommend the purchase price to our clients.

]]> By: Wenceslao - Miami Real Estate King http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5505 Wenceslao - Miami Real Estate King Fri, 15 Jun 2012 16:39:44 +0000 http://www.movoto.com/blog/?p=5907#comment-5505 Nicely done. One cannot underestimate however, the importance of cleanliness, neatness, providing a feeling of "spaciousness" and the ability for buyers to see themselves in this (their future, new) home. Of course, staging could be one of the best investments to a seller. For little expense, properly staging a property for sale and eliminating personal touches that could distract buyers, could be the difference between your home or your neighbor's home selling first. Nicely done. One cannot underestimate however, the importance of cleanliness, neatness, providing a feeling of “spaciousness” and the ability for buyers to see themselves in this (their future, new) home. Of course, staging could be one of the best investments to a seller. For little expense, properly staging a property for sale and eliminating personal touches that could distract buyers, could be the difference between your home or your neighbor’s home selling first.

]]> By: Tricia Lopez http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5504 Tricia Lopez Fri, 15 Jun 2012 16:25:54 +0000 http://www.movoto.com/blog/?p=5907#comment-5504 Please ask a local Realtor for your comps. They will be glad to help you establish a value. Supposed "value" on Zillow and other online sites take into consideration ONLY the location and sale price. You don't know if other homes in the area or nearby are palaces or shacks. You must consider sales of a similar quality of homes, as well as local market conditions, to get a proper value. I've seen many instances of this, most recently when Zillow said a house was currently worth $250,000, but it would require $350,000 to buy it on today's market. Please ask a local Realtor for your comps. They will be glad to help you establish a value. Supposed “value” on Zillow and other online sites take into consideration ONLY the location and sale price. You don’t know if other homes in the area or nearby are palaces or shacks. You must consider sales of a similar quality of homes, as well as local market conditions, to get a proper value. I’ve seen many instances of this, most recently when Zillow said a house was currently worth $250,000, but it would require $350,000 to buy it on today’s market.

]]> By: Cathie Chasman http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5497 Cathie Chasman Fri, 15 Jun 2012 15:32:26 +0000 http://www.movoto.com/blog/?p=5907#comment-5497 I must include foreclosures in my BMAs for relocations! I must include foreclosures in my BMAs for relocations!

]]> By: Nancy Elieff http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5496 Nancy Elieff Fri, 15 Jun 2012 15:31:32 +0000 http://www.movoto.com/blog/?p=5907#comment-5496 You must include all sales in CMA's, because appraisers will. Unfortunately for sellers, that would bring their price down. This is not the agent's fault, but blame the predatory lenders who made bad loans to buyers who could not afford the properties, blame Obama for failed policies that hurt businesses and in turn have caused downsizing, and blame the world for a poor economy. None of that is the agent's fault, and putting an unsalable price on a new listing is not the answer. You must include all sales in CMA’s, because appraisers will. Unfortunately for sellers, that would bring their price down. This is not the agent’s fault, but blame the predatory lenders who made bad loans to buyers who could not afford the properties, blame Obama for failed policies that hurt businesses and in turn have caused downsizing, and blame the world for a poor economy. None of that is the agent’s fault, and putting an unsalable price on a new listing is not the answer.

]]> By: Tracy Delashmit http://www.movoto.com/blog/real-estate-tips/comparative-market-analysis/#comment-5495 Tracy Delashmit Fri, 15 Jun 2012 15:25:23 +0000 http://www.movoto.com/blog/?p=5907#comment-5495 REO and short sales have to be included for an accurate CMA. But foreclosure sales should not be because the bank or mortgage insurance company are involved plus you have to have funds available at the time of the sale. (No time for financing). Also pending short sales should not be used because you dont know if the 3rd party is going to approve the price. The sites suggested for research are the best available to the public but dont let you know if it is truly an arms length transaction. Sometimes they show the foreclosure sale or a dissolution transfer, etc. You should always have a competent Real Estate agent perform this task for you, they have the resources to seperate those unwanted comps out of the equation. And always at no charge. REO and short sales have to be included for an accurate CMA. But foreclosure sales should not be because the bank or mortgage insurance company are involved plus you have to have funds available at the time of the sale. (No time for financing). Also pending short sales should not be used because you dont know if the 3rd party is going to approve the price.
The sites suggested for research are the best available to the public but dont let you know if it is truly an arms length transaction. Sometimes they show the foreclosure sale or a dissolution transfer, etc. You should always have a competent Real Estate agent perform this task for you, they have the resources to seperate those unwanted comps out of the equation. And always at no charge.

]]>