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cma Archives - Cupertino Homes For Sale

Property List Pricing

By | How We Serve Our Sellers | No Comments
What would an upward or lower price adjustment look like based on the current market CMA?  Well, let’s look at an example.  Let’s say that the CMA of previously and recently sold similar homes shows that the listing price should be around $235,000.  However, those sales were between one month and three months old.  Our current market listing CMA shows that similar homes in the neighborhood are listed at $249,000 or thereabouts.  We and you may decide that the market is improving and justifies raising the listing price of your home to $245,000 so that it’s still competitive but a better deal for you.  Of course, this can work the other way as well.
A proper list price that reflects current and realistic market conditions is critical to getting your Mountain View, Sunnyvale, Campbell, Cupertino, Los Gatos, Santa Clara, Saratoga, and San Jose real estate property sold quickly. We don’t want you to under–price, but it’s worse to over–price in any market. Buyers discount value by DOM, Days On Market. The longer a home stays on the market, the greater they’ll discount their offers. So, a realistic list price is how we make sure your property sells without languishing on the market.
How do we come up with a suggested list price that reflects your home’s competitive position? It’s a combination of services and experience, and we’re going to be very careful and detailed in our analysis and market evaluations to make sure that you don’t leave money on the table or sit around wondering why you aren’t getting offers.
Our evaluation of how your property compares to the current competition is the first step. Then we may suggest some worthwhile corrections you can make to improve that position. Once we know what your home will look like when listed, we’ll go into our thorough CMA, Comparative Market Analysis, process.
CMA of Sold Properties
First we select comparable properties out of those sold recently and in the neighborhood or nearby. These “comparables” or “comps” are selected based on similarity in features, location and characteristics with your home. They must have been sold as recently as possible so the sold prices are of maximum value.We then do a go through a detailed “adjustment” process to adjust their sold prices for any differences with your property. If a home has one more bedroom than yours, we would adjust that property’s sold price downward for the value of one bedroom to make the comparison “apples to apples.” We make adjustments for garages, bathrooms and other major features to bring our comps to closely compare with your home. Then we use those sold prices to arrive at a preliminary listing price for your home.

We say “preliminary” because we have another CMA step.

CMA of Current Listings
Now we get more comps, but instead they’re properties currently listed and your competition. We go through the same adjustment process, and we come up with another, possibly higher or lower, price suggestion for your home. This second CMA gives us more up–to–date information about the market which could cause us to lower or raise our preliminary list price to adjust to the current market. Using the two CMA results and an experienced analysis of your home’s position in the marketplace, we can set a listing price that will get the job done.

Price Negotiations

By | How We Serve Buyers | No Comments
We love helping Mountain View, Sunnyvale, Campbell, Cupertino, Los Gatos, Santa Clara, Saratoga, and San Jose real estate buyers to find the perfect property. But we love even more the ways in which we can help them to buy it at the very best price with the very best terms. Sometimes negotiations aren’t all price. A great contract can involve other seller concessions that create the right deal for our buyer clients.
Real estate market data –How can you be expected to make price offer decisions in a vacuum? We spend a great amount of time and effort in collecting market data to help our buyers in their price negotiations. This data involves not only sold property prices by neighborhood, but also current listing pricing to determine the competitive nature of the market.
This data is very thorough, and it’s call a Comparative (or Competitive) Market Analysis.  There are two parts, the comparison of the property you’re considering to similar properties recently sold in the nearby area.  This gives us a firm grip on what has happened in the near past, but by nature it is “past” data, thus possibly not accurate for the market as it is when you’re in negotiations.  We then do another CMA process on the currently listed properties most like the one under consideration and in the same neighborhood or nearby.  This gives us a current market snapshot so that we can adjust our valuation model and our offer to reflect the current market situation.
Thorough knowledge of your situation – Only through constant communication we can advise you properly in pricing negotiations. By understanding your motivations and financial capabilities, we can help you craft a price negotiation strategy with the highest probability of success.
Seller motivation research – While it’s not always legally possible to determine why someone is selling, there are things we can glean from their listing and price activity that will allow us to help you to negotiate from a position of strength.It’s not all money – There are a lot of ways to negotiate a real estate deal, and they don’t always involve money. Perhaps the seller doesn’t have a lot of ability to work with you on price, but they can make other concessions that could result in a deal. We help you to take the best approach.

It’s not over till it’s over – Many real estate price negotiations involve multiple counter offers and a lot of back–and–forth. We’re with you with each counter offer to adjust your negotiation strategy accordingly. Because we can’t know the seller’s financial limitations in many deals, some buyers are elated when they cut a major low-priced deal on a home, but then after inspections they hit a brick wall in negotiations with the seller related to repairs.  The negotiation to purchase a home isn’t over with the price on the contract, and it’s best to know that a real deal at the front end could result in less flexibility after inspections in the repairs discussion.

The thing to remember is that we are right there with our Mountain View, Sunnyvale, Campbell, Cupertino, Los Gatos, Santa Clara, Saratoga, and San Jose real estate buyers throughout the negotiation process with the latest information and experienced advice.

Market Updates

By | How We Serve Our Sellers | No Comments
Do you know how many comparable properties to your home came on the market this week? How about how many were sold or taken off the market? Markets are constantly changing, and it’s our job to monitor these changes and keep our listing clients informed. Changes in the competition don’t always require a price adjustment, but they may. Sometimes they just cause us to make changes in our marketing approach, putting emphasis on features that are no longer available in currently listed comps.
Whether we’re suggesting a price adjustment up or down or not, we’re always concerned with our seller clients’ peace of mind that their real estate property is properly priced and positioned in the market. Use the form on this page to tell us about your property and we’ll do a preliminary CMA for you with recently sold comps in your area. We’ll need more data to do the best job, but you can begin to see how the process works.