Price And Market Analysis
Stanley Combs

The last article mentioned "market price" and "comparative market analysis." Several calls lead me to believe a definition would be helpful to readers.

Market price is what a property actually sold for, whereas market value or fair market value is the price that it should have sold for. The terms "comparative market analysis," "comps" or "CMAs" are sometimes referred to as "informal appraisals." They are used to give a ballpark estimate of the property's value.

This ballpark figure, which is a comparison of the market price of similar properties- within a prescribed area- that have sold within the last six to 12 months, is used by the seller and the broker (or his agent) working together to determine an appropriate best price for the property.

Now for the reality of the ultimate decision on the price. Statistics have shown that if a property is as little as 10 percent overpriced, approximately 30 percent of those looking for a property will have enough interest to look at the property. If it is 10 percent under the "informal appraisal" it will most likely sell before the normal "on market" time frame.

That said, it is understandable why those in the business recommend that you work with a professional realtor to establish a "fair" price and to list your property for sale.

Stanley L. Combs is a realtor working for Keller