A Comparative Market Analysis is how we arrive at a recommended listing price for your home. It is both an art and a science.
Find and analyze the comparable neighborhood homes by number of bedrooms, bathrooms, square footage, lot size and an untold number of additional features. Using the information on how much those homes listed and sold for, can determine your home’s fair market value.
Decisions must be made about how to adjust the value of your property as it compared to other homes. EXAMPLE: if an active listing as been on the market for over 30 days, it’s safe to assume it’s overpriced for the condition or features. On the other hand if the property is the only one on the block with a view, its value goes up, compared to others.
The Comparative Market Analysis (CMA) requires technical experience, neighborhood knowledge, and critical thinking. A poorly executed CMA might compare your home to properties that are not similar enough, or it could draw the wrong conclusion from incorrect data.