When I am showing property to buyers, they often asked if the property has been appraised recently.  It is rare that a property gets "appraised" before the sale, but most Wenatchee area real estate agents (and everywhere) offer a Free "CMA" or Comparable Market Analysis.  It's really a Price Analysis because this CMA is how most sellers determine the original listing price. 


This CMA differs from an Appraisal.  For one thing, the CMA is usually free and an official appraisal generally costs between $400 & $450.  A CMA is less scientific and agents offer it FREE  as a way to make contact with potential sellers and, hopefully, develop a professional relationship with them if they decide to list their home in the future. 


When I do a CMA, I use current market factors and historical information  to compile the report.  I include "Active Listings", "Recently Sold" and "Pending" sale information.  Sometimes I include "Expired" listing information, because this will identify the difference between the price trends with those homes that have sold and those that lanquish on the market and, ultimately, "expire" from their listing contract date.  Most homes that "expire" are overpriced, but not always.  Sometimes there are unique circumstances that make a home difficult to sell... such as potential financing problems or a very custom home that appeals to a relatively small market share.  

When I compile a CMA, I compare homes of similar age, square footage, lot size, location and condition.  If a home is very unique, I use as many similar factors as possible then make appropriate compensations.   The crux of the CMA is current and recent market activity as well as the current economic conditions and emotional factors dirving the market.

On the other hand, an official "appraisal" uses only historical, statistical, information.  They use black and white facts and figures, while agents filter in the general atmosphere of the current market.  Appraisers use  only "sold" and, sometimes, "pending sale"  information.  Although they take into considerations general economic conditions, they do not speculate on current market activity.    Besides using statistical  information, they also use the "replacement cost" method to indicate an alternative value.  Appraiser's reports are more fact based because they are generally used for the purpose of a bank loan and the financing institution wants "proof" of the value... not speculation by some realtor hoping to get a listing. 


If you have questions about the value of your home, please call and I will prepare a FREE CMA for you.  If you're serious about selling your home in the near future, you might consider getting up to three FREE CMAs from 3 different realtors (from different companies).  Then you can determine a more true market value, instead of taking one opinion.   Some real estate agents tend to give a falsely high price in order to smooze the seller into thinking they can sell the home for more than the other agents. 


The truth is the agent is not the one buying it.  The home is worth what someone is willing to pay, so it's best to get more than one opinion.  If you do get more than one CMA, hire the agent you feel most comfortable with... the one you believe will market your home to your best advantage and the one you can communicate with through the selling process.  If the agent you like best came in with the lowest price, ask them if they would be willing to price it higher.    It wouldn't hurt to check references, as well. 


Some agents take a listing, do the 3 P's, and you don't hear from them again until some other agent brings an offer.   What are the 3 P's?  1) Put up a sign, 2) Put it in MLS, 3) Pray.   Find an agent that will actively market your home and  communicate regularly with you through the process.



Have a great day!












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Remember:
Information Is FREE.  Knowledge, Experience and Integrity Are Priceless


For current Wenatchee real estate news, info and trends contact Carol Williams Today:
TopTeamCarol@gmail.com