When most savvy home sellers go to sell their homes, they hire a great agent who’s an expert at home marketing to evaluate what their home is worth based on the industry standard “Comparative Market Analysis,” or “CMA.” The CMA shows the sellers what they’re likely to get for their home based on similar homes that have sold. It’s the same tool used by lenders when they send out appraisers too.
But relying solely on the CMA may be costing you a significant amount of cash.
Adding Value to Your Home
You see, CMAs look at other homes and add and subtract values from your home based on the features of the other homes that have sold. In other words, if your home has a pool and none of the other sold homes does, you’ll add some money to the price of your home to account for the pool. If your home has one less bath and no garage when compared to similar homes that have sold, you’ll subtract from the price of your home.
But what a CMA does not account for is recent appreciation trends. That is, what percentage increase homes that have sold (and homes that are on the market now) in your neighborhood have appreciated to over the last year or so.
Why is this important?
Well, CMAs are good for establishing a solid “middle of the road” price for which you are likely to get a lender to finance money for your prospective home buyer, but they often leave some money on the table due to the fact that they’re not exact – especially at spelling out the highest you may be able to get for your home.
That means prices that vary a few percentage points up or down from what the CMA indicates are still likely valid prices. So, if you don’t factor in how much homes have appreciated in your area over just the last year alone, you may be missing out on listing your home for a slightly higher value.
And it could mean thousands or even tens of thousands of dollars for you.
Know How Much Your Neighborhood Has Appreciated
Here at MoneyInMyHome, we make it easy for you to see what you may be able to get for your home with an estimate that includes your neighborhood’s percentage of appreciation in value for the last 12 months. When you enter your home’s address, we show you what Zillow says your home’s value should be, then we calculate – amongst other factors – how much your street and neighborhood have gained in value over the last year.
So, how does this help?
Well, for starters, you’ll be able to see what a possible high-end price you may be able to get for your home. When you meet with your agent, you can show them what the appreciation values in your neighborhood are so they can take that into account by upping your price from what the CMA says the home’s value should be. In a majority of cases, most sellers are, at the very least, able to split the difference between the CMA price and the appreciation price and still be able to sell their home to buyers who need financing to buy.
It’s a good way to make sure you don’t cheat yourself out of any money on the sale of your home. Try it out now here for FREE!