How can I evaluate differences in CMAs (Comparative Market Analysis)?
Question: We’ve talked to four different real estate firms about listing our home. Three of the market analyses came up with a fairly similar price; but the fourth one was considerably higher. What’s the harm in starting at the highest price, since we can always come down?–J.B. Answer: If three out of four comparative market analyses were close, it leads me to believe that the fourth was not a true reflection of market value. Unless there was additional information known only by the fourth company, the approximate value indicated by the other companies is probably closer to what a ready, willing and able buyer would offer. It’s important that your property be competitively priced the moment it hits the market. An overpriced property will be forgotten by buyers and real estate agents. Statistics show that not only will an overpriced listing take longer to sell, but the sales price will usually be lower than true market value.
