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With predictions of a softening real estate market in 2006, having accurate and up-to-date home value data is vital for home sellers, helping to ensure a timely and profitable transaction. It’s also important for home buyers who want to make sure they pay a fair price when purchasing a property.

While free information is available on a number of websites, much of the information is outdated or simply inaccurate. A Custom Market Analysis (CMA) represents the best way to obtain comprehensive and reliable home-value data. The CMA calculates the market value of a home based on extensive information about the home and the neighborhood, including comparable home sales, local schools performance and neighborhood demographics.

RealtyTrac offers the industry’s most comprehensive and accurate CMA report for properties nationwide. You can order this report for free through a member of the RealtyTrac Agent Network who will be able to help you interpret and analyze the report. Or you can get the report instantly for just $19.95. Order a CMA home value report now.

Of course, the CMA may not account for recent renovations and enhancements to the property, but buyers and sellers who are familiar with the condition of the property can adjust the estimated value accordingly.

A good real estate agent can give sellers suggestions about making small, cosmetic improvements that will enhance the property’s value. Simply planting some flowers or re-arranging the furniture or even just making sure the home is spotless can make a big difference when showing the property to potential buyers.

Selling? Avoid under or overpricing Traditionally, it’s considered important for sellers to pinpoint the market value of a property being sold so that they can set an asking price that allows them to take full advantage — in their pocketbooks — of the fair market value of the property.

When setting an asking price for a property, it’s important that sellers neither under price nor overprice the property. Under pricing is a common pitfall in sizzling markets that have experienced double-digit gains in recent years. In these markets, which are more widespread now than ever before, homeowners can underestimate the dramatic rise in value that has occurred since the home was purchased. This may lead to an asking price set far below market value. And once the asking price is set, there’s no easy way to raise it short of praying for a bidding war.

Sellers should also be careful to avoid the more subtle, but equally damaging mistake of setting a too-high asking price. Overly exuberant about the rate of appreciation they’ve observed historically for their property, homeowners can fall into the trap of setting an asking price based on speculation, with not a lot of hard data to support that speculation.

By contrast, if sellers find the happy medium between under pricing and overpricing — with the help of a quality CMA and real estate agent— they’ll be able to sell the property in a reasonable time frame and receive full market value from the sale.

Buying? Make a wise investment In the hot sellers markets of recent years, some buyers have been so afraid they’ll miss out on a home that they submit an above-asking price offer with little or no research — sometimes without even laying eyes on the property. While those days are probably over for now, buyers who become emotionally attached to a home may fall into a similar trap. Instead of taking time to make sure that the house is worth what they’re offering, these buyers hurriedly submit an offer and end up making a poor investment.

That’s not to say that buyers should completely separate their emotions from the buying process. After all, much of the reward of homeownership comes from being able to enjoy your home. But a home purchase is also the most important investment that most people will make in their lifetimes, and the quality of this investment can have a huge impact on the quality of life that the purchaser experiences.

Before a buyer signs and submits any offer, they should consult a comprehensive CMA report that includes recent comparable sales and neighborhood information to make sure the amount of their offer matches the value of the home.

Whether buying or selling a home, an accurate valuation of that home is imperative. A CMA home valuation helps sellers get a fair price and sell within their timeframe, and it helps buyers make a wise investment.

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