How is the Market Value of my Home Determined?
Realtors use a handful of methods to determine the value of a home. The most common method is the Comparative Market Analysis (CMA). A CMA is an in-depth evaluation of recently sold “comparable” homes in the past 6-12 months. A CMA alone, however, isn’t a crystal ball that determines what a home will sell for. A knowledgeable and experienced Realtor will use the CMA data in combination with their knowledge of the neighborhood to arrive at a listing price close to the true market value.
A professional manually completed CMA, as opposed to the online “How Much is My Home Worth” automated tools will take into account features not only of the home, but also the local area and neighborhood, which these tools cannot consider. A Realtor who knows the neighborhood well will not have to rely solely on the CMA. They will ideally have years of experience selling homes in your neighborhood to arrive at a listing price yielding the highest return and a quick sale.
CMA’s consider, but are not limited to:
- Square footage
- Number of bedrooms
- Number of bathrooms
- Upgrades to kitchen
- Window quality
- Roof age
- Lot features
- Location; primary or neighborhood street?
- Style of residence
- Flooring type
In conclusion, homes that are accurately priced for the market using a CMA and a Realtor’s neighborhood expertise will sell the fastest. Overpriced homes will sit on the market the longest. If you’re ready to put your home on the market or have questions about pricing, call Pamela at (903) 581-3900. You can also visit our Sellers page for other information about how we will sell your home.