Is a "free" CMA worth the price?

One way to estimate the current value of your home is to have a real estate agent prepare a CMA, which stands for “Comprehensive (or Comparable) Market Analysis”. It is similar to an appraisal in that it helps you determine the market value of your home by comparing it to others currently on the market or recently sold. These homes are commonly referred to as “comps.”

Once upon a time, agents charged a hefty fee for preparing a CMA for potential clients. Eventually, it became common practice for agents to provide this service free of charge as a way of winning clients. However, the amount of time and effort an agent invests in this research can vary widely, and can significantly affect the validity of the results.

Following are some questions to ask when reviewing a CMA:
· What criterion did you use for your comps? Are you comparing apples to apples?
· Did you personally visit any/all of the active listings, or merely view them online?
· How similar to mine is the condition of the homes you used as comps?
· Does your research include active, pending and sold homes (i.e. all three categories)?
· Are current market conditions comparable to the time frame you researched?
· Which home(s) do you believe to be my biggest competition?
· How long do you think it will take to sell my home at the price you are recommending?

So, to answer the question I posed in the title of this article, a "free" CMA can be worth several hundred dollars if it is done diligently, or it can be worth what you paid for it -- nothing. If you ask the questions I posed above, you will know which you are getting.

Call me today to schedule a thoroughly-researched and accurate CMA of your home. 206-708-9800

Local home sales statistics

Home Sale Statistics for January (most recent available)

# of Homes & Condos Available for Sale
West Seattle 2007: 356 2008: 602 Change: +69%
King County 2007: 7,596 2008: 12,370 Change: +63%

Average Days on Market for Properties Sold
West Seattle 2007: 58 2008: 60 Change: +2 days
King County 2007: 80 2008: 93 Change: +13 days

Average Sales Price of Properties Sold
West Seattle 2007: $393,630 2008: $407,277 Change: +3%
King County 2007: $464,283 2008: $479,993 Change: +3%

# of Sales Year to Date
West Seattle 2007: 145 2008: 101 Change: -30%
King County 2007: 2,193 2008: 1,403 Change: -36%

Sold!

Sold in just 2 days!

Listed by Alice Kuder Feb. 3, 2008
Offer received Feb. 5, accepted Feb. 6
Sale closed March 3, 2008

It’s true that home sales in the Seattle market have slowed substantially since last summer, but here is proof positive that homes that are priced at market value from the outset, sell quickly.

Call me today for a free, no-hassle consultation and ask me about my proven strategies for selling your home quickly & for top dollar, even in this buyer’s market.
(206)708-9800

Tax tip

Most people know that mortgage interest payments are tax deductable, but did you know that the interest paid on a home equity loan is also deductible? This is true no matter what you use the money for.

User-friendly government?

I read an article in "Costco Connections" magazine recently that recommended the following website ( http://www.ofheo.gov/ ) as a source of information regarding housing markets in various parts of the country. When I checked it out, I wasn't actually able to find that report, but there was a lot of other information you might find helpful concerning taxes and government offices/departments, etc. What really caught my eye was the header, "Making government user-friendly"! I intend to spend some more time touring the site. If you choose to check it out, drop me a line and let me know what you think.