Oahu Home Sales

The C.M.A.

Every business has its own “buzz” words and the real estate business is no exception. Let’s take the term “C.M.A.” All real estate people know what it means. It refers to the words, Competitive Market Analysis.

Whether you are a potential buyer or seller, you should become familiar with a Competitive Market Analysis. A C.M.A. is a written history of those homes that have successfully sold and those listings that have expired during the original listing period.

A C.M.A. removes the guesswork in determining a home’s value. This is possible because it puts you in touch with reality, not hearsay, not opinions, but fact. With the price of homes today, there is just too much at stake to be shooting from the hip when it comes to estimating value.

The typical C.M.A. is a computer printout that lists the street address of homes that are similar to the subject home. Also listed are the number of bedrooms, baths, style of home, additional rooms, and other special features. You can find out how long each home was on the market, its asking price and final sale price, and the financing used by the buyer.

If you are a seller, you must be sure that you are pricing your home in accordance with the lessons of the past. The facts provided by a Competitive Market Analysis are the same facts that will be examined by potential buyers. If you study recent sales data, you should be able to price your home with the certain knowledge that you can justify your asking price with reliable information to back you up.

If you are a buyer, a C.M.A. will give you confidence in the wisdom of a particular purchase. The information provided should also be of assistance to your Realtor® when presenting your offer to the seller.

ADVICE:
Neither buyer nor seller can feel comfortable with a real estate transaction without factual information. Be sure to ask your Realtor for a C.M.A. when buying or selling.

Five Reasons to Buy Oahu Homes In 2008

1. Selection, selection, selection.

There are about 5,000 available properties on the market on Oahu. Regardless of the price range a buyer desires, there are plenty of houses or condominiums from which to choose. Just a few years ago the resale inventory dropped below 2,500 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. Now, there is a great selection of available properties.

2. No Bidding Wars.

In 2005, I had one client that made an offer on seven homes. They lost all seven to the ‘feeding frenzy’ that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this current market.

3. You can make an offer.

A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the list price vs. sell price ratio is much lower.

4. Repair requests are welcomed.

After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold ‘as is’. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.

5. Real Financing is available.

It has been said the ‘wink, wink’ zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for military personnel are now available. It’s a great time to buy real estate!