If you’re planning on selling your house, the first step is to determine your home’s value. The most effective way to do so is to use a comparative market analysis. Here’s what all home sellers should know about this essential tool. 

What’s a Comparative Market Analysis?

A comparative market analysis (CMA) is a document created by a real estate agent that determines a home’s value by comparing it to similar ones in the area that are on the market or have recently sold. After examining several other properties, the real estate agent will come up with an appropriate price range.

Then, to determine whether your home should be listed at the high or low end of that price range, the agent will consider other details of your home such as age, number of rooms, recent renovations, landscaping, and proximity to noisy streets.

How Does It Help You Sell Your House? 

By figuring out your property’s true value, a CMA helps you sell your house more quickly and at the right price. Without a CMA, you could list your home at too low of a price and either deter potential buyers who assume there’s something wrong with the property or end up with less money than you deserve. 

On the other hand, if you list too high, buyers will look for a home of similar value that’s more affordable; many buyers perform their own CMAs to prevent overpaying. Moreover, even if someone does agree to your too-high price, the mortgage will only cover your home’s appraised value. You and the buyer must then figure out how to make up the difference, potentially costing you a lot of money in the long run. 

For help listing your home at the ideal price, turn to Lawrence Realty Inc. Established in Red Wing, MN, over 70 years ago, this family-owned-and-operated realty company makes selling your house as stress-free as possible. Your agent will create a comprehensive comparative market analysis to entice buyers and ensure you get the money you deserve. Learn more about their services online and call (651) 388-4745 to discuss your needs with a friendly team member.