So you’re thinking about selling your home or you want to purchase a home for the right price. Today I wanted to discuss the process that your real estate professional should go through to establish a price point for your project. There are three key factors involved in getting to the root of the value of your home.
Comparable Sales, Comparable Active Listings and Comparable Expired Listings: The first thing we will need to find out is EVERYTHING about the subject home. Every detail is important in finding properties with the most similarities. 808Kona.com will scour the MLS, County records and our own listings to find three homes that have sold, are active and are expired with a total of 9 homes that are as similar to the home as possible.
Sold listings tell you what people are willing to pay right now for a similar home. Active listings will show what homes will be competing with yours in the open market, Expired listings will show what to expect with an overpriced listing.
Location, how title is held, HOA amenities and HOA dues, style of home, size of home, number of bedrooms and number of bathrooms, lot size and usability of the land are all factors that will be used. Because real estate is so unique and diverse, there are monetary adjustments that will have to be made on most of these differentiating factors. When initially gathering this information, 808Kona.com will look for the most recent sales, newest listings and most recently expired listings.
As a general rule, the sales should have occurred no more than 6 months ago and preferably no more than three months. In some situations the agent may have to stretch these boundaries if there are a limited number of comps. We will likely have to make value adjustments on the principle property or the comparable properties. Adjustments might include additional bedrooms and bathrooms, square footage adjustments, amenity and lot size adjustments and they all must include depreciation for accuracy.
It is also important for us to reach out to brokers that have pending sales so that we can find out the selling price and history of a sale. Sales are not all the same. In some cases a seller may have been more motivated to sell fast or a buyer with a quick closing and all cash can get a better deal and can lower the value of competing listings after the sale has closed.
A good CMA will be laid out to be as understandable and user friendly, as much as possible. With proper access to local market data, the process takes about 2 hours of research and adjustments on each CMA.
We, here at 808Kona.com can do this service completely free for you right here in Kailua Kona. We are members of the MLS and we keep current data available to come up with the best valuation possible.
Give us a call and let’s talk story to find out what your goals and objectives are. We’ve been doing this for over two decades and we are ready to impress you with a professionally prepared CMA for your sale or your purchase!