A comparative market analysis (CMA) is a calculation prepared by a knowledgeable listing broker to identify the possible price of a house. It is not the same as an appraisal, which targets the specific value at a point in time. It is important that property owners learn about how a comparative market analysis is prepared. This blog discusses understanding a comparative market analysis for MA properties.
How a MA Comparative Market Analysis is Created
The current value of a dwelling is driven by buyers. Because the real estate market fluctuates frequently, the best way to estimate current value is to review recent sales. Current listings are not valid estimations since we can not know what they will eventually sell for or if they will get sold all. When preparing a comparative market analysis, real estate brokers attempt to use comparable property and in similar neighborhoods. Exact matches are not often available, so adjustments are usually made to compensate for differences. Upgrades, living area, features, and other elements are taken into account. Not all amenities add value and the amount of adjustments rarely equal the cost of upgrades.
Understanding A Comparative Market Analysis For MA Properties
A comparative market analysis typically includes a range for price instead of an exact amount. Where a property falls within that range depends on the amount and quality of competing listings and your time line. If you have a short window in which to close on your home, your pricing should be more aggressive (at either the bottom or even below the price range). This is especially true if there is high inventory. Basically, the higher you price a home, the more time it may take to sell. In markets where competition is sparse and your home is extremely desirable, you may have the benefit of pricing at the upper end of the range. A experienced broker can help you with this decision and offer useful advice. Incorrectly pricing a property can lead to loss of valuable time and money, so rely on the experience of real estate agents and the undeniable figures in the CMA report.
I hope that you found this information on understanding a comparative market analysis for MA properties useful. For other information on listing a home for sale, read the other blogs on this site. To receive a free comparative market analysis, contact Jonathan de Araujo at 339-200-9444 or jonathansrealestate@gmail.com.
