Atlanta Luxury Homes – Competitive Market Analysis, What is it and Why Do I Need One?

When buying or selling Atlanta Luxury Homes it is critical to have your agent develop a Competitive Market Analysis. The recent fluctuations in the Atlanta Luxury Homes market make it impossible to understand what you should pay for a new luxury home or the price at which you can successfully list your luxury home without a detailed market analysis.

For instance, in the two Atlanta zip codes that command the highest median price – 30327 and 30305, the following price fluctuations have occurred. In 30327, the Median Price hit its high in July 2008 at 1.65million. Today the Median Price for 30327 is $1.25 million or a 24% drop. And in 30305, the Median Price hit its high in October of 2007 at $900k and today stands at $700k, at 22% drop. With price fluctuations this severe occurring in the past 24 months, a CMA is a prerequisite before entering any real estate transaction.

CMA stands for “Comparative Market Analysis.”

A CMA is an excel spreadsheet prepared by your real estate consultant that provides objective data comparing the features of your property to similar properties which are on the CMA list, are pending sale, just sold, or listings that failed to sell.

The CMA is developed in advance of listing your home for sale. This is a professional assessment of what your house is worth, but not a formal appraisal. The CMA will be employed during negotiations with buyers to demonstrate that your home is priced correctly.

To gather data for a professional CMA, your consultant (agent) will inspect your property (pricing inspection) and list the selling features that drive and support their final price recommendation. This inspection deals with readily viewable features of the home. The consultant is not going to crawl under the house, nor does the house need to be cleaned and ready for an open house. It should be in such a condition that allows the agent to make an accurate assessment of its condition and worth. If you plan to make improvements before selling, inform the consultant during the pricing inspection.

Following the pricing inspection, the consultant will collect data on properties with comparable selling features through FMLS, use their market knowledge and contacts in the field to back up the data and when the analysis is complete, review the resulting CMA spreadsheet with you.

With this information in hand you will be prepared to make a competitive offer on a home or list your home at a price that the market will bear.

Will Home Improvements Make Me Money?

Making improvements to our homes has great appeal for many of us. As well as improving our own living situations we may hope to increase the value of our property, but does it really work?

The world of home improvements seems to be everywhere these days. Turn on the television and you’re likely to be presented with a show about decorating, building a house from scratch, moving home or some other issue related to the property market.

Property is big business and there’s definitely money to be made for those of us who know what we’re doing. The problem is that many of us don’t really know where to start. We need a pointer – which home improvements will add the greatest value to our homes?

Let’s start with one luxury home improvement that may have surprising results: a swimming pool. Plenty of us may dream of coming home from work and relaxing in a pool. Indeed, it sounds idyllic. So it must increase the value of a property, right? Well no, not necessarily.

The actual impact that building a swimming pool will have on the value of your property will vary depending upon the location of your property and its circumstances. The key here is to think about potential buyers and what they might like.

If you’re attempting to sell your property as a great new home for a family then building a pool could turn out to be a bad move. Many parents would worry about the dangers of having a swimming pool in the same house as their small children.

They may even offer you a lower price for your home, reflecting the fact that they will have to bear the cost of having to pay to get your pool filled in. An excellent example of where a home improvement might not have the desired effect.

The important issue here is deciding who your target market is and what they are likely to want. We’ll have a look at a more positive example.

If you have a nice 3-bedroom home in a suburb, with a garden, then that may well be the type of property that could be very desirable to a couple with children. It might be a great location for the couple in commuting terms, while the garden could provide a great play area for the kids.

So how should you go about improving the property to increase its value? One obvious area that you could improve would be the garden. Kids generally like lots of space to play in – they’re not likely to be bothered by flower beds and the like.

You should get the garden into child-friendly shape. Make it look and feel like a great play area for the family’s children.

You’ll be amazed by how such relatively small improvements can add greatly to the value of your home.