- January 21, 2022
- Posted by: Saman Saba
- Category: FSBO
4 Reasons Why a Comparative Market Analysis so Important When Selling as a FSBO
Labeling a property as For Sale By Owner in Maryland and taking it upon yourself to manage the property until a sale occurs can be quite fruitful. Not only will you gain experience that you can use on all future properties, but you will also be able to keep more of your hard earned equity.
In order to be successful in selling as a FSBO, there is one step that you cannot skip and that is conducting what is called a comparative market analysis or CMA. A CMA is imperative for property sellers to undertake as it allows you to compare your house to similar ones that have already sold in the past couple of months and those that are currently on the market.
Usually, a CMA is provided by the listing agent as a part of their listing presentation where they provide data (in the form of sold comparables) to support the price at which they believe will allow the property sell as the highest amount and in the quickest time. However, as a FSBO in Maryland, you will be responsible for doing your own research to support your CMA.
In order to conduct your own CMA, you will need to turn to sites such as realtor.com and zillow.com in order to examine properties that are within the same neighborhood as your propoerty that have sold in the last 3-6 months. By doing this, you will have a better understanding of what you could potentially sell your own property for.
If you’re trying to understand why a CMA is significant to the FSBO selling process, continue reading.
Reason #1: It Provides Critical Knowledge
Being able to compare the sold price of each property that has sold in your neighborhood can help you come up with a competitive price for your own FSBO property. When evaluating other properties, take note of how that property compares to your own. For example, be sure to compare the number of bedrooms, bathrooms, general finishes, number of garages, total sqft, and whether the properties have any additions as all of these aspects will determine whether your property should be priced above, below, or exactly the same as your neighbors property.
Reason #2: It Gives You Insight into Your Potential Profit
FSBO is all about maximizing the potential profit that you can get from a transaction by forgoing the traditional route of hiring a real estate agent. Undergoing a CMA will be able to help you understand exactly how much you have to gain once you sell your property. This is because when you’re able to contrast what your neighbor sold their property for versus what you can potentially sell yours for, then you are able to begin determining your potential walk away equity will be after you have paid off any mortgages/liens and any other closing costs.
Reason #3: It Introduces You to Trends
A CMA is able to give you knowledge of the current listing prices of the local trends. Trends occur in just about every market, and that includes the housing market. A CMA can introduce you to different trends that are happening, which will help you stay toe to toe with your competitors, if not ahead of them already.
For example, if you start to notice that every property in your neighborhood with a stainless steel appliances is selling for $20k more than those without, you’ll notice this trend and be able to make any adjustments before you place your property on the market for sale.
Reason #4: It Allows You to Sell Faster
Generally, most sellers find it ideal to sell properties as fast as possible. This is because any house or building that spends longer in the market can often give the seller or the property a bad reputation, which essentially takes it even longer for you to get to and close a deal.
The information you gather from a CMA can allow you to make the right decisions that can take your FSBO endeavors to new heights as you will be able to quickly get the property out of the market and into a buyer’s hands right away.
These reasons should help outline why a comparative market analysis is a key tool when you’re selling FSBO property. The information that you can receive from a CMA is unparalleled, and it can be quite advantageous.
How Can We Help You?
If you are interested in selling as a For Sale By Owner, you’re in the right place.Get the legal assistance you need to sell your FSBO property. Saman Saba is a real estate attorney in Maryland working to empower real estate sellers and buyers so that they may make better and more informed decisions regarding one of their most important assets: their residential properties.
In an effort to help you successfully sell your property as a For Sale By Owner, we have prepared a FREE FSBO Success Packet which includes:
- An in depth explanation of our flat-fee pricing model and exactly which services are included.
- A complimentary copy of Saman’s bestselling book, Sell Your Home With Confidence: Reduce Your Liability When Selling, FSBO EDITION which goes into depth regarding what steps a FSBO seller should take when selling their property.
- A complimentary viewing of a 30-minute Masterclass entitled, Home Equity Protection: How To Not Be Bamboozled When Selling which highlights the main ways that home sellers can leave thousands of dollars on the table when selling.
- And so much more!
Ready to get started? Click here to schedule a complimentary consultation.