One of the most common questions I get from homeowners when I provide a Comparative Market Analysis (CMA) is why their home’s suggested value differs from a neighbor’s listing price. On the surface, it can be confusing to see a nearby home listed much higher and wonder why your home is not valued the same. But when determining market value, many factors come into play, and not all homes are created equal.
How I Determine Your Home’s Value
When I prepare a CMA, I review a wide range of details to make sure your home is priced accurately and competitively. Some of the key factors include:
→ Current Active Listings: What is for sale in your area and how long those homes have been on the market.
→ Recently Sold Homes: Sales over the past 6–12 months show what buyers are actually paying, not just what sellers are asking.
→ Home Style: A ranch cannot be directly compared to a split foyer, a double wide, or a two-story home.
→ Year Built, Bedrooms, and Bathrooms: These basics play a major role in determining value.
→ Condition and Updates: I review recent photos and compare your home’s condition to others nearby.
Most importantly, I focus on what the appraiser will look at. Appraisers base their valuations on homes that have recently sold, not ones that are still listed. They evaluate:
→ The closest comparable properties in proximity.
→ Sales that occurred closest to your closing date.
→ Homes with the same style, similar above-grade finished square footage, and similar bedroom and bathroom counts.
So if your neighbor’s brand-new two-story home just listed for $500,000 but your home is a one-level ranch built in a different era, their price is not considered a direct comparable for your property.
Why Timing Matters
Imagine a neighbor lists their home $75,000 higher than any other home in the neighborhood. You may think, “If they can ask that much, I can too.” But there is a catch. Until that home actually sells, there is no proof buyers will pay that amount.
If you have similar upgrades or even more finished square footage, the best strategy may be to wait until their home closes. Once it sells, that price can be used as a comparable for an appraisal, which may help justify a higher listing price for your home.
Listing before that sale closes can put you at risk of the home not appraising for your asking price, which can create issues during the closing process.
The Importance of Pricing Right
Overpricing your home in today’s market can backfire. While price per square foot is one tool Realtors use, it does not tell the entire story. If that number pushes your home’s value higher than what is typical for your neighborhood, it may sit on the market longer, and homes that sit often sell for less in the end.
That is why I always analyze:
→ Price per square foot
→ Current listing prices
→ Final sales prices
Together, these pieces help create an accurate picture of what your home is truly worth.
Tools and Expertise That Go Beyond Numbers
I also use resources like the Fair Housing Price Index, which provides a baseline value based on how much home prices have increased in your area since you bought your property. While it is a helpful starting point, it does not account for upgrades, renovations, or unique features. That is where my local market expertise comes in.
Every CMA I complete is custom-built for your property. It is not a formula or an automated system. It is a detailed process that involves research, careful analysis, and experience to ensure you receive the most accurate guidance for pricing your home.
In Conclusion
Your home’s value is not determined by what your neighbor’s home is listed for. It is determined by what the market shows buyers are willing to pay for homes like yours. By focusing on recent comparable sales, accurate data, and local trends, I can help you price your home strategically to achieve the best results.
If you are curious about your home’s current value, I would love to create a custom CMA for you. Whether you are considering selling now or sometime in the future, I am happy to provide a professional opinion of value, free of charge, and connect you with trusted experts to help you prepare your home for the market whenever the time is right.
Catrina Fletcher
Realtor, Property Manager, & Certified Listing expert
(423)967-1318 | CatrinaFletcherTN@gmail.com
https://catrinafletcherrealtor.com/
Summit Properties
Voted Best Real Estate Firm 2024 & 2025
255 Broad St. Suite 100,
Kingsport, TN
(423)830-1133
https://summitpropertiestnva.com/
