Performing a comparative market analysis (CMA) is an essential task for real estate agents. A CMA allows agents to estimate the current value of a property by analyzing the prices of recently sold, comparable properties in the immediate area. This enables agents to set listing prices for their client's homes and help buyers make competitive offers. Agents can perform their own analysis by researching comps on online real estate listing sites. By using the data obtained from a thorough CMA, agents can ensure that their clients' prices are fair and accurate, thereby increasing their chances of a successful sale. This guide will provide detailed instructions on conducting a CMA and using the results to price properties correctly.
Conduct a Thorough Geographic Search
First, agents should define their geographic search area when researching comparable properties. The location of the property should be used as a starting point for this search. Agents should then look for homes in the same neighborhood or nearby communities that have been sold recently and are similar enough to the subject property in size, features, and amenities. The agent should note any special features or upgrades that may affect the value of a home and include them in their CMA report.
Provide Property's Address and Basic Information
Once all necessary data has been collected, agents can begin creating a comparative market analysis report. This document should include the subject property's address and basic information, such as square footage, number of bedrooms and bathrooms, lot size, and age. The comps that were selected should also be listed along with their sale prices. Agents can then calculate an average market value for the subject property based on these comparable sales.
Carefully Analyze the Data Collected
Finally, agents should analyze the data they have collected carefully before making any decisions regarding pricing or listing a home. It is important to discuss any discrepancies in asking prices vs. sold prices with clients. This will help them have a better understanding of the current real estate market conditions.
Final Thoughts
Conducting a comparative market analysis is an important task for real estate agents. It ensurea that their clients' homes are priced competitively. By taking all factors into consideration, agents can ensure that the price of their clients' homes are correct according to present-day values and market trends.
Have a comment, tip, or concern?
Thanks for reading Elite Informer! Here's more where that came from.