Howell County Home Values
Howell County Home Values fluctuate with supply and demand in the Missouri Housing Market. Pricing a home at current market value doesn’t have to be difficult or stressful. A Real Estate CMA, also known as a Comparative Market Analysis, provides information about the recent and current local area housing market.
Missouri Housing Market
Home Values fluctuate due to supply and demand in the Missouri Housing market. Area markets with higher demand for home sales and fewer homes available for sale favor sellers, whereas markets with a higher supply of homes and fewer homebuyers favor buyers.
Real Estate CMA
Real Estate Professionals provide Comparative Market Analysis for clients to provide information about comparable properties in the local market that have recently sold, were on the market, and did not sell, and competitive properties currently listed. CMAs provide clients with current information based on their property and comparables with adjustments made for features and take into account whenever possible concessions in the sales of comparable properties to deliver the most likely price range for market value at the current time.
When considering home valuations, there are different home valuation services which are automated valuation models AMVs, Appraisals, Comparative Market Analysis CMAs, and Brokers’ Price Opinions BPOs.
Automated Valuation Models provide insight into the market using mathematical modeling, however, AMVs can lack in regards to accuracy due to not accounting for the recent market sales or possibly concessions in the home sales contracts. An Appraisal is provided by licensed or certified appraisers who oftentimes work for the lenders and or mortgage insurers.
Appraisals are provided by licensed or certified appraisals. Appraisals develop an opinion of value to which values the collateral for real estate transactions with lenders for loans.
Comparative Market Analysis Reports provided by Real Estate Professionals provide information about the recent and current market of similar homes listed, sold, and unsold. Additionally, CMAs are more likely to take into account concessions of comparable property sales. The goal of a Real Estate CMA is to provide clients with the necessary information about the current market value range and most probable selling price range for properties of interest when purchasing or when selling property.
Brokers Price Opinions are similar to CMAs however pinpoint down the most probable selling price, as opposed to providing the price range of most probable listing and selling prices.
Pricing a Home
Pricing a home to sell at current market value helps home sellers to get fair market value for their home and sell quickly. Homes that are priced incorrectly, for example over market value, pose risk to potential buyers due to appraisals ordered by the lenders not coming in at value. In this scenario, the buyer is put in a position to come up with the extra funds in order to purchase the home. These additional funds could be in addition to funds brought for the down payment and closing costs.
Additionally, when a homebuyer is presented with two similar properties in similar conditions in the local market, this creates competition for the sale. Many buyers will choose the more affordable property in substitution of the higher-priced property. Properties that sit on the market for extended periods of time also risk losing the initial housing market interest making it harder for the home to sell even if and when lowering the listing price.
If you are preparing to buy a home in Missouri, we suggest getting a sellers’ agent to provide a CMA of the home of interest to help you determine the offer price range. If you are a home seller, whether selling through an agent or for sale by owner, we suggest getting a CMA so you know what the local housing market looks like. A CMA will help to provide information about what the competition in the market is for buyers, and what the current market value range of your home is.