When buying or selling Atlanta Luxury Homes it is critical to have your agent develop a Competitive Market Analysis. The recent fluctuations in the Atlanta Luxury Homes market make it impossible to understand what you should pay for a new luxury home or the price at which you can successfully list your luxury home without a detailed market analysis.
For instance, in the two Atlanta zip codes that command the highest median price – 30327 and 30305, the following price fluctuations have occurred. In 30327, the Median Price hit its high in July 2008 at 1.65million. Today the Median Price for 30327 is $1.25 million or a 24% drop. And in 30305, the Median Price hit its high in October of 2007 at $900k and today stands at $700k, at 22% drop. With price fluctuations this severe occurring in the past 24 months, a CMA is a prerequisite before entering any real estate transaction.
CMA stands for “Comparative Market Analysis.”
A CMA is an excel spreadsheet prepared by your real estate consultant that provides objective data comparing the features of your property to similar properties which are on the CMA list, are pending sale, just sold, or listings that failed to sell.
The CMA is developed in advance of listing your home for sale. This is a professional assessment of what your house is worth, but not a formal appraisal. The CMA will be employed during negotiations with buyers to demonstrate that your home is priced correctly.
To gather data for a professional CMA, your consultant (agent) will inspect your property (pricing inspection) and list the selling features that drive and support their final price recommendation. This inspection deals with readily viewable features of the home. The consultant is not going to crawl under the house, nor does the house need to be cleaned and ready for an open house. It should be in such a condition that allows the agent to make an accurate assessment of its condition and worth. If you plan to make improvements before selling, inform the consultant during the pricing inspection.
Following the pricing inspection, the consultant will collect data on properties with comparable selling features through FMLS, use their market knowledge and contacts in the field to back up the data and when the analysis is complete, review the resulting CMA spreadsheet with you.
With this information in hand you will be prepared to make a competitive offer on a home or list your home at a price that the market will bear.