Get a CMA to see what your home is really worth
What’s a CMA?
Depending on its purpose, a CMA is either a Comparative or a Competitive Market Analysis of a property. Those are both similar, and often used interchangably, but they do have slightly different uses. Based on the titles, it is easy to guess that the purposes of the reports would be to compare a property to those around it, or see how a property competes in current market conditions. These reports are often used to determine a property’s value so that a good listing price or offer can be determined. Sometimes they are completed every-so-often just to keep track of the changes in a property’s value over time.
Can’t I just use one of those free online home valuation sites?
Yes, you can use any one of a number of free online home valuation sites, but the results will very likely be wrong.
There, I said it.
The thing about the free online property valuation sites is that they are guessing. When was the last time anyone from one of those sites called you and spoke to you about your property, so that they could get a good idea what it might be worth? Has anyone from any of those sites actually come by your home to see what’s going on? I’m going to go out on a limb here and say, “No. No, they haven’t.”
What those sites are relying on is composite information from sales in “the vicinity” of your home. What does that mean? It means they look at recent sales within a specified distance from your house, without paying any regard to neighborhood boundaries. You and I both know that neighborhoods matter, but the free online valuation sites don’t care. That’s a major flaw in their pricing models, and pricing models built on major flaws rarely produce good results.
If by chance they do, it’s pure coincidence. But how do you know if you’re the lucky one-in-a-million coincidence who stumbled into good results? You don’t, and you can’t. Relying on just one of these models is really not in your best interest. Unless you have a report prepared by a local professional — someone like me — who is working in the market daily, you just can’t rely on the results you get online. If you really want to know what your home is worth, you need to ask someone who knows, and can produce a report that means something.
So what’s your house really worth?
All that aside, the only thing you’re really concerned with is, “What’s my property worth?” Every property is unique, so to answer that question, I need to do some research. If you’re interested in knowing what your property is worth, just click the button below and I’ll get back to you as soon as I can.
A CMA, of course, is not really an appraisal because the way the numbers are crunched — and indeed, what numbers are used — is very different. I have found, though, that in the end, my analyses are pretty close to the values that appraisers come up with. I’m actually pretty proud of that. I’ve spent years developing and refining my pricing model, and I’m never really done.
It all comes down to what the real estate market is doing at the moment, and the market has a way of changing suddenly. In response, I have to constantly change how I put together a CMA to determine what your home is worth. When I set out to do a CMA and figure our what your home is worth, I do a lot of number crunching.
I actually do two different analyses, and then compare the results. Then I take my results, and compare them to several of the big automated valuation models like Zillow and Trulia that are out there on the internet. I look at what the county assessor has to say, and also look at a special tool the National Association of REALTORS has made available to us, which looks at five separate pricing models on its own. I look at what home price inflation has done since the last time your home was sold.
When all is said and done, a pricing “ballpark” normally becomes pretty apparent. Anything that stands out gives us more reason to figure out what is going on in our quest to determine your home’s value. At the end of the CMA, we can be pretty comfortable knowing what your home is worth in the current market. Want to see it in action? All you need to do is click the button below, give me a bit of information, and I can get started. I look forward to hearing from you.
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When you come back, look around this website. I’ve got a lot of useful stuff up here, and I add more all the time. Let me know if you need any assistance. Here are some things you might find interesting in your real estate search in Highlands Ranch or the south metro Denver area:
Free reports for buyers and sellers: I’ve put all my reports into one free, no-obligation, easy-to-access place
My blog: my thoughts and musings as a real estate broker
My newsletter: a monthly publication packed full of interesting and fun information, delivered right to your email
About me: how I work, and how I became a real estate broker
If you have any questions or comments about the process of buying real estate in Highlands Ranch or the Denver metro area, feel free to give me a call at 720-258-6211, or fill out this little form and send it to me. I’ll get back to you as soon as I can, but remember that I can’t answer your questions if you don’t ask them. If you’ve got something on your mind, let me know, and do it now before you forget.
By the way, I’m never too busy for your referrals.