The most common method for determining what a home might sell for is the Comparative Market Analysis. This is the method used most often by Realtors. The CMA will demonstrate what similar homes have sold for in the current market.

Most CMA?s will have four parts. The analysis will show Active listings currently on the market, Pending sales, recent Sold listings, and Expired Listings.

The Active listings will show you what Sellers are currently asking. We sometimes call this 'fantasy land' because these are only asking prices, not sales. They may be wildly overpriced and are not to be used in determining your asking price. The most common mistake is to price a home by comparing active listings only.

Pending sales may give you some indication of prices that at least attract an offer. What you don't know is what the contract price is. The selling price may be considerably below the asking price. Comparing these prices gives you some 'feel' for the market.

Recent Sold listings provide the very best information. They show exactly what buyers are willing to pay for a home like yours. This is the strongest indicator of market value and this is what will you will use to determine your asking price.

Most often, the Expired listings will show you what buyers are not willing to pay. Being overpriced is the most common reason a listing expires.

There are 4 factors that determine whether a home sells or not: (1) Location; (2) Condition; (3) Price; (4) Marketing. We have all heard that the most important factor is location, location, location. However, if you are selling a home, its location is not something that you can change. Location should be considered when choosing your asking price. The home with the better location will obviously sell for a higher price.

The condition of the property is another important factor. To get the highest price the home must be in perfect condition. Will homes in poor condition sell? Yes, of course. But homes in poor condition will always sell for less than those in good condition. This is why simply comparing price-per-square-foot may be deceiving.

I believe that selecting the right price is 80 percent of selling a home. Any home will sell when the price is right, even a home in a bad location and in poor condition. When the price is attractive someone will buy it. On the other hand, an overpriced home will not sell even if advertised on the front page of the newspaper.

The purpose of marketing is to put the home out there for buyers to discover it. Common forms of marketing include the Multiple Listing Service (MLS), web sites, signs, flyers, home magazines, newspapers ads, and open houses. The internet is now the most effective method of advertising second only to the MLS. Through the MLS the home is exposed to thousands of real estate agents working with buyers, and today even buyers can search the MLS on their own.

Just how do you go about preparing your own Comparative Market Analysis? If you are not a real estate agent with access to the MLS, you will be at quite a disadvantage. You may try internet sites that offer a home value analysis, but be warned that the results may vary wildly.

Here are some suggestions that might help:

1. Establish a relationship with a Realtor and ask for their help. Most Realtors will prepare a CMA for free (if they think they might get the listing). No one works for free over and over again. Bring a Realtor onto your team and offer them some business from time to time. Use them to list and sell a home and use them to buy a home. Then if you ask them to prepare a CMA on a property that they will not earn a commission on, they will still be happy to help. Be upfront with your Realtor when discussing your plans.

2. Some Realtor web sites offer a free pricing analysis. For an example, look at BradentonRealEstate.com for the free ?What's my home worth report?. These reports can provide you with a wealth of information. Most often the reports are from the local MLS and quite valuable.

3. Some Bank web sites offer a home value analysis tool. You may see an example at BankofAmerica.com. Be warned that this information is highly unreliable for specific pricing and gives you a very broad range of value.

4. You might want to hire an appraiser and pay for a professional price opinion. The cost of an appraisal is determined by the scope of the work but usually run between three and four hundred dollars. Keep in mind that an appraisal is only an opinion. Also, refinance appraisal results are usually quite higher than actual market value.

5. Your county property appraiser's web site will probably have search tools that you can use to find comparable sales. You can find out a lot of information about homes in the neighborhood. Learn to use the site and you'll have a good handle on property values.

While searching for comparable properties you will want to narrow your search to homes of similar age, square footage, lot size, construction type, number of bedrooms and baths, interior design, and amenities. You may need to make price adjustments for things like pools, fences, square footage, fireplaces, etc. Talk with an appraiser or your Realtor about price adjustments.

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