Price is the single most important decision in any listing. Get it right and the home sells quickly at full value. Get it wrong and it sits, gets stale, and eventually sells for less than it should have. A strong comparative market analysis, or CMA, protects your seller and your reputation.
Start with the right comparables
Good comps share three traits with the subject home: location, size, and condition. Pull sales from the last 90 days within a tight radius. In a dense neighborhood that may be a few blocks. In a rural area it may be a few miles. The closer and more recent, the better.
- Prioritize closed sales over active listings. Actives tell you the competition, but closed sales tell you the truth.
- Match square footage within roughly 15 percent.
- Account for condition, upgrades, lot size, and views with dollar adjustments.
Adjust like an appraiser
No two homes are identical, so you adjust. If a comp has a renovated kitchen and the subject does not, subtract value from the comp. If the subject has an extra bathroom, add value. The goal is to answer one question: what would this comp have sold for if it were as similar to the subject as possible?
Find the range, then the number
Your adjusted comps will cluster into a range. The right list price usually sits near the top of that range if the market is hot and inventory is low, and nearer the middle if buyers have choices. Never price on hope. Price on evidence.
Present it so the seller believes it
Sellers often have a number in their head that is higher than the data supports. Do not argue. Show. Walk them through the comps, the adjustments, and what happens to homes that launch above the market: fewer showings, price cuts, and a lower final sale. When the seller sees the pattern, the number sells itself.
A home priced correctly on day one almost always nets more than the same home priced high and reduced later.
Real Estate Buddy pulls comparable sales and a recommended range for any property, so you can walk into the listing appointment with the evidence already in hand.