Bellingham CMA ( Comparitive Market Analysis )

The amount of time it takes for a home to sell is largely based on the listing price. It is the seller’s responsibility to decide on a listing price for a home, however a professional real estate agent will provide working knowledge and expertise to assist in arriving at a realistic price.

Bellingham BPO ( Brokers Price Opinion )

A CMA is similar to an appraisal, but it is important to know that it is NOT an appraisal. An appraiser estimates a properties value mainly for a lender to help determine a maximum loan amount. A CMA is a detailed analysis regarding the sales prices of similar homes, a market analysis. This will help sellers to determine a competitive price for their home.

It is important to know that buyers set the value of homes; it is not always specific qualities that make a home valuable. Financing terms, interest rates, insurance costs, tax consequences and more help determine home prices. When financing interest rates go up, the cost of purchasing a home also goes up, this lowers the amount of home buyers can afford.

Analyzing a Property

There are several factors that help determine a properties value

1. Percentage of Homeownership: Is there a large amount of owner-occupied properties or do rental dominate the area?

2. Vacant Homes and Lots: A large amount of vacant homes can determine a low interest in an area, this can lower the value of properties.

3. Changing Land Use: Is the area changing from residential to prodomately commercial uses? If this is the case properties may lose their value.

4. Utilities: Does the area have desired utilities? Electricity, natural gas, septic or sewer lines, cable television and high speed internet.

5. Nuisances: Odors, eyesores, industrial noises, high winds and traffic noises can lower the desire to purchase in a particular area.

6. Reputation: Is the neighborhood considered prestigious in comparison to others in the area? Do the schools have good reputations in the area?

7. Site Analysis: Are the lot measurements conforming to the home? How much road frontage does the boundary of the property contain? Does the home back up to a creek or lake? How deep is the lot? What is the shape of the lot? Is the topography flat or hilly?

8. Construction Quality: Is the quality of the home materials poor, average or high?

9. Condition/Age: What is the age of the home? What is the condition of the home?

10. Square Footage: The size of the home includes the garage, living space, basements and possibly the porches.

11. Number of Rooms: The number of bedrooms and bathrooms have a huge effect on the value of a home. A full bathroom consists of a toilet, sink and bathtub; a ¾ bathroom consists of a toilet, sink and shower only; a half bath consists of a toilet and sink only.

12. Air Conditioning and Heating Units: In hot areas an air conditioner or central air is of high importance. Central heat and energy efficient heater systems are of great value in cooler climates.

13. Garage and Carports: An enclosed attached garage is of great importance to some buyers. How many cars can it accommodate? Is there storage space? If no garage is available, is the carport covered or open? Does the property allow for the addition of a garage?

14. Design and Layout: Is the floorplan of the home functional? Are there enough closets throughout the home? Is there an eating space or dining room? Where are the doors to the outside of the home located? How large are the bedrooms and living space?

Some design deficiencies include

the front door opening in the middle of the living space

no front hall closet

the backdoor is difficult to reach from the kitchen or garage

relatively small or no eating space near/in the kitchen

the dining room is not conveniently accessible from the kitchen

the bathroom is visible from the living area

outdoor living areas, such as a patio, is not accessible through the kitchen

15. Date of Comparable Sale: The sale of the comparable homes should be within 6 months of the analysis date. Older sales are not reliable to the recent market due to inflationary or deflationary trends.

An effective and professional CMA should be comprised of an initial pre-viewing and consultation and a follow-up appointment. Your real estate agent will review the CMA in detail and suggest an estimated market value of your property. You will receive a professional CMA report for your records.