With the market fluctuating recently, it’s nearly impossible to guess what your home could sell for. We’ve seen homes that were purchased in August of last year go up by $200k more than they were purchased for. If you’ve owned your home for less than five years, you may be surprised at how quickly the price has increased.
When home sellers consider putting their property on the market, the first thing an agent will do for you is a comparative market analysis (CMA). This is free of charge! You don’t have to commit to selling your home for one to be done. It’s a document that gives you the information you need to make an informed decision.
But what exactly is it, and how can it be of help to you?
Ultimately, it breaks down the information you need to know to help you decide whether or not you should sell your home.
You’ll get a unique list of properties that are similar to yours. Some that have sold recently (typically in the last 3-6 months) and ones that are currently on the market. If you have three bedrooms, two baths, and a double car garage, you should be looking at those types of homes in the nearby neighbourhoods as a starting point.
Keep in mind that recent renovations, square footage, and different features can play a part in the price. Using the CMA only gives you a range of where your sale price could be.
Other things you need to keep in mind are:
- The location of the home – is it near any amenities?
- The age of the property.
- Square footage and lot size.
- Any renovations or home improvements.
- The number of bedrooms and bathrooms (bonus for in-law suite capabilities).
A CMA can help you sell your home by giving guidance on the right price to list at. It also gives you insights into how to respond to offers. You could get a low-ball offer the day it’s listed and be tempted out of urgency. Knowing what the current market trends are will give you the confidence to pass over any underpriced offers.
Listing your home too high can result in buyers passing over it. Pricing it too low can leave money on the table because buyers put lower offers than what you really wanted. The CMA will help you find the “goldilocks price” that can attract serious buyers and get you the sale price you wanted.
As a seller, you have the final say on the asking price. You can listen to the advice of an agent or risk a different outcome based on your own predictions. Either way, starting with as much information as possible is the best way to feel empowered making a decision moving forward. When was the last time you had a CMA done for your home? Even if you’re not thinking of selling, you must be curious to know how much your investment has appreciated! Please feel free to reach out by clicking here, so you know where you stand.
