Cj, Other/Just Looking in Wheatland, WY

I've been looking at homes through this site and CMAs were done. When we brought this to the agents?

Asked by Cj, Wheatland, WY Fri Nov 9, 2007

attention, they said they were wrong. We are having a difficult time and the prices keep going up even though homes have been on the market since June. How does one come up with a CMA? We have given offers based on what we found here and the agents won't even consider our offers.

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Answers

5
CJ:
The CMAs that you have done using this site are probably wrong because the data that Trulia uses probably comes from tax data and not MLS data or not enough data is provided to do a CMA. For example, one 4 bd 2 bth home may have sold for $350k while another only sold for $99k. If you are using all comps in the $99k range to make an offer on a homes in the $350k range, no your offers wont even be considered.

For example, here is why two 4bd 2th homes might have such a dramatic price difference.

The $350k home has twice as much sq ft and is on 20 acres. It was built two years ago using only top quality materials. It is in a highly desirable area. The tax data may not have been updated and the information about the house being used is from the previous home that sold for $99k two years ago and was torn down.

The $99k home is a manufactured home on .2 acres. It was put up in the 1930s and has never been upgraded. It is located on a busy street across from commercial property. The tax data was not updated when the owner sold 19 acres of valuable commercial frontage property to the developer.

So, someone just comparing 4 bd 2 bth homes would not know the true value of each. And a computer using tax data my say that the house worth $350k is only worth $99k and the $99k home is worth $350k because the data being used is bad.

Technology and information has given the consumer to gather data but the value of a Realtor is interpreting that information.

I hope that helps.
Good luck,
Ruth
0 votes Thank Flag Link Mon Nov 12, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
I THINK you are looking to establish market pricing for homes you are trying to buy. A CMA is a COMPARATIVE MARKET ANALYSIS. It is what we REALTORS use to determine a current market trend. What we do is look at recent transactions with similiar characteristics as the house in question. We look at a reasonable about of time,NOW I would say 6-9 months is reasonable, possibly a year. A year and a half ago..I was using 3 months. A REALTOR should be able to do this for you. Are you working with one? If not, go find a good one! The should be able to show you what is actually selling and for how much, then compare it to what is actually on the market for sale. Your agent can also see the percentage of the asking price that the sellers are actually getting. I can't understand "prices going up?" A home on the market since June is not horrible in todays market, there is alot of inventory and buyers are taking their time. Houses ARE SELLING, just at a slower pace. Sellers however, unless they are in trouble, are not giving away their properties. I have had "low ball" offers on some of my listings and the sellers just got offened and refused to even reply.

If you need a referral to a good BUYERS AGENT, I am part of a vast network of Certified, trained specialists. I would be happy to refer you to an agent, or even two to talk to and help you. There is NO COST OR OBLIGATION involved. just some help in the process. Let me know.
Good Luck
0 votes Thank Flag Link Fri Nov 9, 2007
Not sure what your question is, but CMAs are done using closed sales, not asking prices. This information is a little dated, since some closed sales went into contract as much as 2 months previous. In a down market that needs to be taken into consideration.
0 votes Thank Flag Link Fri Nov 9, 2007
Hi CJ,

I'm sorry, I'm a bit confused by your question.

Are you assuming that homes listed on this site underwent a Comparative Market Analysis?

There is no way to know that. Additionally, list prices, though somewhat indicative of your competition, are not the best stick by which to measure market value. It is through recently SOLD comparables that the best list price can be determined.

If you are looking to formulate offers based on what is listed here, you may not be using the best strategy.

Are you working with a Realtor? If not, you may want to consult the services of one so that you are not continually taking shots in the dark on offers. Your Realtor will research the specific market, research specific history on the home(s) on which you wish to make an offer(s), and also use various other strategies to help you formulate the strongest offer!

Good luck.
0 votes Thank Flag Link Fri Nov 9, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
Contact
Hi CJ,
You're best bet is to find a Realtor, (buyer's agent) that will help you. This costs you nothing as usually the seller pays both Realtor's commission.Your Realtor will know how to come up with a fair market price. If you're trying to do it on your on, you'll just get frustrated. If you'd like me to refer you to someone, let me know.

Chris Mullins
Keller Williams of No. Colorado
cmullins426@comcast.net
970-576-5263
0 votes Thank Flag Link Fri Nov 9, 2007
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