One of the most common tasks for a real estate agent is to prepare a Comparable Market Analysis (CMA) for homeowners who are considering selling their home. An official appraisal would cost several hundred dollars, but I provide this service FREE, as a tool for homeowners to establish a selling price before putting their home up for sale.
One of the biggest challenges for any real estate agent is to prepare a price analysis on unique properties. The Wenatchee real estate market has lots and lots of unique properties and it is often difficult to find true "comparables" to establish an accurate value.
Until the last few years there really weren't any housing developments, where homes of similar style, age, and size were built within close proximity to each other at the same time. With unique properties, it is necessary to find the "most comparable" properties then use adjustments and compensating factors to establish a price.
When doing a CMA, I look for homes of similar actual age, amenities, square footage, lot size, and location. I use recently "sold" and currently "listed" properties in the analysis. I also look at "expired"listings to see what price similar homes did not sell for.
When I can't find homes of similar actual age, it is necessary to find homes with a similar "effective age"... or use a depreciation factor to offset the age difference. An example of the "effective age" factor would be a home that is actually 40 years old but has been highly updated and upgraded, giving it an "effective age" of, say, 10 years. So, once the "effective age" is established, the home can be compared to those of similar "effective age", not actual age. Also, if I must compare the home to newer homes, a depreciation factor can be used.
There are other considerations, of course, but this gives you a feel for some of the variables used to determine value on a unique property. CMA's have proven to be quite a reliable way of establishing market value for a home but, ultimately, it comes down to what price a buyer is willing to pay for the home.
As an additional note, be aware that when the home does sell, the buyer's bank will require a professional appraisal (paid by the buyer) in order to get financing on the home. This is the bank's documentation for security that the home is worth what the buyer has agreed to pay.
Best Regards,
Erin Davidson
Aspiring to be your Wenatchee real estate agent
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