Dear David,
What is a CMA? – Just Wondering

Dear Wondering,

Before putting your home on the market, your realtor will perform a Comparative Market Analysis, known in the real estate industry as a CMA. This is basically a “lite” version of a formal, professional appraisal, which examines the prices of similar properties that have sold in your area while adjusting for differences in age, condition, location, etc. The CMA allows a Realtor to assess what you could reasonably expect a buyer to pay for your home.

In our industry, it’s common for Realtors to advertise a “free CMA” to attract new business. Keep in mind that the CMA is part of the Realtor’s job. If you’ve officially hired them by signing a Listing Agreement, the service is covered by their fee and you won’t need to pay extra for it.

Dear David,
We are moving overseas for 6 months. Should we rent out our home? – Up & Away

Dear Up & Away,

The rental option is worth considering as it allows you to generate an income while you are away. As your home will be occupied, you won’t have to worry about finding someone to inspect it to fulfill your insurance requirements, and the risk of break-ins or damage from non-use (such as burst pipes from freezing) can be reduced considerably.

I would recommend that you speak with your accountant to explore what the tax implications of renting might be for you, keeping in mind that when you sell your home, you may have to pay capital gains for the period of time when it wasn’t your principal residence.

Before you can rent, you’ll need to clear your home of personal belongings, food and alcohol. As an absentee landlord, it may be helpful to have a property management service keep an eye on your renters and be available to handle any maintenance issues or emergencies.

Dear David,
We purchased a new home and our summer plans have changed. Can we move the closing date after the deal is signed?

In a case like this, the seller is not obligated to entertain your request, as the signed Agreement of Purchase and Sale (APS) is a legally binding contract. That said, they may be willing to accommodate if the new closing date is also convenient for them. To find out, have your Realtor make an inquiry.

If the sellers are agreeable to changing the closing date, your Realtor will prepare an amendment in this regard that must be signed by both sides in order to become a binding part of the contract. Good luck, it’s worth a shot!