Comparative market analysis is an essential part of every real estate agent's job. It is used to determine the value of a property through comparison to similar property transactions located within a certain radius. A CMA will accurately establish a sale price. It will also guide buyers in deciding on a fair offer. As your agent, I know that conducting a thorough and professional CMA is critical to minimizing time on the market as well as ensuring that clients receive or make an offer that is fair and reasonable.
Market Evaluation Made Easy
Every agent knows that a working knowledge of the area in which a property is listed gives the agent and his clients a distinct advantage. A market evaluation will determine the value of homes in the neighborhood based on recent sales, but it is also partly subjective. The true value of any home is ultimately determined by how much a buyer is willing to pay for it, and each buyer sees each home differently. A good agent will be able to glean the pertinent information from a market analysis and apply it to a particular property. With the help of an online support service, an agent can quickly and efficiently accomplish much of the work involved with doing comparative market analysis.
Understanding Market Value
Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale.
The existing pool of prospective buyers determines a property’s value, based on:
- Location, design, amenities and condition.
- Availability of comparable (competing) properties.
- Economic conditions that affect real property transactions.
Factors that have little or no influence on the market value of a house include:
- The price the seller originally paid for the property.
- The seller’s expected net proceeds.
- The amount spent on improvements.
The impact of accurate pricing:
- Properties priced within market range generate more showing and offers, and sell in a shorter period of time.
- Properties priced too high have a difficult time selling.