Avoiding problems

B - Buyer CMA: What if buyers do their own CMA?

When buyers do their own market analysis, do not be intimidated. Unless they live locally, you have a much better handle on local homes than they do.

You may run into a buyer, or their agent, who prepared a listing of the sale of homes from your area. They did their own CMA in order to research local prices and set the stage for any negotiations to diminish your ability to counter the offered price. 

With the increase in informed buyers and the use of buyers’ agents, this is not uncommon in a home sale. Sometimes the comparative information is simply referred to: “The two story home down the street sold for only $286,000 and it’s almost identical to yours.” 

This makes an excellent case as to why you should know what has sold locally over the past two years. Since this is your neighborhood, you have several advantages. The buyers will likely know nothing outside of what the printed report states and their agent (if they have one) will probably not be as knowledgeable about the local housing market as you.

Going on the offense:

If a house like yours (style, bedrooms, size, etc.) hasn’t sold lately, point this out. 

Also, comparisons provided by the buyers or their agent will not include by-owner properties. Find out as much as you can about local FSBO houses that sold, since the buyers or the agent will have nothing to refute the information you provide. 

If you need to further drive home a point about a local house being compared to yours, simply ask, “Have you ever been inside that house?” 

Expect a sheepish and negative response. Proceed to tell them why it sold so low: the poor condition, interior decor in serious need of an expensive makeover, poorly designed traffic flow, builder-grade cabinetry, etc. Of course your recollections may be somewhat elaborated, but that’s nothing new in real estate sales. 

Moreover, if your home is priced higher than the other property, you really should be selling the buyers on why your home deserves a higher price. You’ll need to emphasize your positives–newer kitchen, better grade cabinets, finished basement, etc.