Finding the correct price to list your home is sometimes a challenge especially if this is your first time to sell a home. We are coming out of a volatile housing market and still the media publishes mixed reviews of how the market is actually doing.
As a Realtor it is my job to guide sellers and to arm them with the information that makes them comfortable with determining the correct listing price of their home.
Home sellers hear terms such as ” market value ” appraised value ” ” tax appraisals ” ” CMA ‘s ” ” Comps ” and they all mean something different well, CMA and Comps are the same thing.
Value vs. Comparative Market Analysis : Your home’s value may be more or less than than what the Comparative Market Analysis suggest that it is. What that means is that when you look at your home for example and you have put an extra $25,000 worth of renovations, repairs or upgrades into your home, you may or may not be able to recoup that in the price of your home. A Comparative Market Analysis or CMA is done by stacking your property up against similar properties that have sold in the past 60 to 90 days within the same neighborhood within a 1 or 2 mile radius. I also look at what is Pending and Active with contracts. A CMA will get you a close to what you should list your home at as possible and that can be different that what you perceive the value to be.
Why looking at a CMA is important. First of all, All appraisals are based on the same CMA and the appraised value are determined the same way. You want to have your home listed at a fair price from the get go. Homes listed at a correct price from the start, sell quicker and for more money. The following link is an example of what a CMA looks like.
CMA 1307 Greenfield Closed
Tax Appraisals have nothing to do with the value or the pricing of your home. They are done in Nashville on a four-year cycle and are done by someone in the tax accessors office. They do look at comparable sales but not as thoroughly as an appraiser for the buyer’s lender. If you see on a tax record an appraisal of a certain amount if could be way off from an independent appraisal.
Do foreclosures matter when pricing your home. Unfortunately yes. If you are sitting in an area surrounded by foreclosures or distressed properties that will have an impact on pricing your home. However, most appraisers do factor that in when doing an appraisal.
East Nashville does have a few foreclosures on the market but not a huge amount and they are not rock bottom low prices either. They tend to sell quickly as well.
Lastly, I highly recommend using a Realtor. Obviously I am one so I am going to say that but I really do care. Homeowners have and can sell their homes on their own but it is often for less money and it can get tricky. Have a professional negotiate on your behalf. Not just price but repairs as well.
