A. Buyers: Now that you’ve found the perfect house to buy, a CMA is a your best tool to reveal if the asking price is a fair one and what would be a strategic offering price.

A. Sellers: Now that you’ve decided to sell your home, a CMA helps you price your house to your best advantage. Otherwise you could price too high and have your property languish on the market, or price too low and lose potential profit.

Q. What exactly is a CMA?

A. It’s an acronym you hear a lot in real estate offices because a Comparative Market Analysis is an evaluation of a house’s value at a given time. It compares the values of similar type properties. For example, you wouldn’t compare beachfront property with a property across the street. Square footage, neighborhoods, school districts and amenities should all be similar.

Q. What’s in a CMA?

1. Active – A list of active properties will show you the houses similar to yours (or the one you want) currently on the market. The disadvantage of studying this group is that you can’t be certain how accurate the price is. Maybe the price is meant to be a tad high with hopes of negotiation room, or maybe it’s a great deal. Until a property actually sells, you won’t know if the price is a realistic one.

2. Pending- A list of properties that are under contract. As the name implies, it’s not a sure thing, and many realtors don’t like to share this information with you. The advantage of knowing what’s pending is that you have a good indication of the market’s current direction.

3. Sold-A list of sold properties similar to your house should be the most helpful to you. The prices are set, and two parties reached a deal-you’ve got more pieces of the puzzle to work with.

Q. Is a CMA the same thing as an appraisal?

A. No, it’s not an appraisal. Before you secure your loan, you will need to have a state licensed appraiser visit the home and physically assess the property.

If you’re a buyer or a seller of real estate, a CMA is a needed tool for fair pricing. Drop by or call my office, and I will be happy to help you with one at no obligation.

The home inspection is a physical evaluation of the house, done for the home buyer’s benefit. Are there structural problems? Is there asbestos in the walls of that charming cottage that was built 80 years ago? Is the roof sound and does it look to be three years old as the owner claims? These are questions the home inspector takes very seriously – to help a home buyer like you.

Think football for a moment. Appraisal is what the talent scouts do. They’ve heard about this great player and know if he’s a hitter or a playmaker. They know exactly what salary he should demand. Much like a talent scout knows a player’s best qualities and his worth, a qualified appraiser can quote figures for houses in various neighborhoods and let you know what kind of investment you are considering. Their expertise can guide you to a sound piece of real estate. So you can place your nest egg in a nest that not only nurtures you but over the years gives a good return for your initial investment.

Home Inspection can be compared to a medical team’s assessment that’s ordered after the talent scouts have identified the next great quarterback or lineman. A good medical team may find a health problem that might disqualify the hottest new talent no matter how much he can bench press or how fast he can run. The same is true for a good home inspector. He or she reveals potential problems or inconsistencies after conducting a thorough inspection of the house you’re considering.

While “location, location, location” is always good real estate advice, imagine your disappointment if your dream house has a faulty foundation that would cost $45,000 to correct. Sometimes a home inspection might not squash a sale; instead it gives bargaining power to the home buyer.

For example, I know of one house price that went down by $20,000 after the home inspection revealed that the house being listed as a four-bedroom house was actually a two bedroom house. Evidently creativity only goes so far. As Martha Stewart would say from wherever she’s doing community service, “That’s a good thing.”

To make sure you know the game rules, let’s review. An appraisal puts a dollar figure on a house and keeps the bankers happy. A home inspection is a physical examination of the house, and its purpose is to protect the buyer. An appraiser assesses property the way a talent scout scrutinizes top dog players for the NFL draft. A home inspector physically goes over a home, looking for potential problems, much the way a medical team examines top NFL material and looks for hitches or inconsistencies.

Go team!

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Call me today at 919-624-5479, and let’s make this Carrboro house into your home!

Quarterpath Trace Subdivision

One of my current clients is going to need some assistance in buying her first home, so I was very relieved to find that this wonderful program is still going to be an option. NCHFA has proven to be very beneficial to some of my clients. I’ve been able to help several first time home buyers get a loan by referring them to a lender that works with NCHFA. One client got an $1800 tax credit, good for each year for as long as they hold their mortgage. Someone else got $8000, and another qualified for $4000 in downpayment assistance.

If you’re a first time home buyer in North Carolina, I’d love to help you find a preferred lender that can work with you. Give me a call today, and talk about your options!