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Be careful with high values in CMA

May 4, 2017

 

Comparable Market Analysis or CMAs are estimates for pricing of a property. These are usually provided by agents before the listing agreement is signed. This is an important factor because it shows you why there may be an interest of the agent to give the seller an inflated price.

 

CMA and Listing Agents

 

The CMA is needed for the seller to make a decision on what to price the property. This is also a time where the seller is choosing between listing agents. Realtors know that this is the time to provide the seller with a "whatever sounds sweet" answer. This is in order to be able to obtain a signed Listing Agreement. Essentially, the seller tends to choose the highest priced CMA as the Listing Agent.

 

Once a Listing Agreement is signed...

 

There is very little for a seller to do once a Listing Agreement is signed. Usually, these agreements are locked tight, and the seller would owe the agent commission through the term of the Listing Agreement. This term is usually 6 months, so within that time the seller would most likely have to reduce the property to its actual value. In other words, the Agent has you stuck in a situation where it seems that the Agent always wins. 

 

Our "Cancel Anytime Agreement"

 

Our company prides itself in giving their clients a "Cancel Anytime" Agreement. This means that we are free to tell you the truth about your value. And this is important since time is value when listing a property.

 

Hope this helps.

 

Will Puente, MBA

Broker of Expert Way Realty

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