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I think a boat is like a home. People live in both. People move..and may leave the house or boat behind. Maybe they move the boat and change the house. Maybe they stay with the boat and house in the same place for years.
But often there are lots of questions that need to be asked and answered, before anybody make a big decision, whether it be about boats or property.
One item that helps inform people about real estate is the CMA.
Comparative Market Analysis.
Mostly the CMA is used for Sellers, but some agents use it to help the Buyers as well. The CMA should involve recent sales, if they are available.
It gives both Buyers and Sellers a good overview of what/how the market is doing, currently. But the market is always moving…slow as a row boat, or fast as a speed boat.
In the last year, we saw more properties BOM (back on the market), more properties being withdrawn/cancelled as listings, and more properties giving up their last breath as expired listings. Inventory was very low.
What’s with the expired/withdrawn/cancelled listings? Maybe the Sellers were just testing the market to see if they could get the top dollar. Maybe something changed for the Sellers to remove the property from the market. Expired? Those are the properties that are overpriced, or in such a rough condition that the buyers rejected them.
I use the CMA not only for comparables, but for contrasts as well. In a town like Alameda, that has such a diverse style of properties (very old Victorians, very new 3 story homes shoved together, new and old condos, new and old townhomes, properties with direct water views, properties hidden away on a side street), it would be much easier to have every property exactly alike. (That won’t happen.) Even the some of the tract homes are old enough to have very updated amenites. So nothing is consistent.
CMAs allow the agent to present to the client what their intended price point may buy. Good or bad.
But there are other questions that need to be considered: location, schools (are they filled up?), amenities (close to shopping, transport…eliminating auto use?), homeowners associations (keeping watch over the exterior of the properties so nobody has the right to slum them out)..and on and on!
No matter what/how/when the CMA is used…it is always the market that dictates the pricing, not the Seller. It is always the market that dictates the pricing, plus the motivation of the Seller and Buyer.
The CMA is one way to approach a sale/purchase. But putting the reality back into real estate is what creates the facts.
Alameda Real Estate this Week
Alameda Real Estate Awards
None! I’m still finishing up my Tuesday online writing class..which is in direct conflict with the Broker Tour. 1 more week has been added, and then I’ll be out there!
Back to the rain! I hope everybody is water-tight!