What are free home valuations worth, and why are they offered? Almost every Realtor has “Free Home Valuations” all over their messages; all you have to do is click on their message. They will gladly prance and parade to your residence with the primary purpose of hoping that you will sell your home with them.
In my experience, 50% of those valuations are in the ballpark. The remainder tell people what they want to hear or are afraid to tell the truth because they do not want to upset a potential seller. They gather all the glamour B.S. and dump it on you to impress you. Or try to!
Wanting you to like them.
You don’t have to like a heart surgeon if you’re having heart problems. You don’t have to like a paramedic if you’re in an accident. I know I want professionalism and to be cared for 100%, nothing less.
Free has no value; there will always be a price to pay, now or later. I don’t know who said this, but I love it: “Pay the price once and only cry once”!
What is a Comparable Market Analysis? (CMA)
My interpretation of a CMA is the following:
A Comparative Market Analysis (CMA) helps determine a property’s correct selling price. Ultimately, the best price the market will bear is the correct selling price.
A market analysis is divided into three categories:
1. Comparable homes that are currently for sale
2. Comparable homes that were recently sold
3. Comparable homes that failed to sell
By looking at similar homes currently offered for sale, you can assess the alternatives a serious buyer has. You can also be sure that we are not underpricing your home.
Looking at similar homes sold in the past few months, you can see a clear picture of how the market has valued homes comparable to yours. You can also see the days on the market for these to sell. Homes that sell for the correct price sell the quickest.
Banks and other lending institutions also analyze these sales to determine how much they can lend to qualified buyers.
Looking at similar homes that failed to sell or had price reductions, you can avoid pricing at a level that would not attract buyers.
I ask you, now what do you think are free home valuations worth?