Whether you are a homeowner deciding to sell your home, or a qualified buyer looking to purchase a home of your own, it makes sense to hire a quality, professional real estate agent to serve and represent you, your needs and priorities, and your interests. personal best interests. One of the essential first steps in this process should be the use of a professionally designed, relevant, realistic and well-explained Competitive Market Analysis, or CMA, to guide you to the smartest strategy to use in terms of targeting. of prices, marketing, sale and/or purchase and procedure, in a conscious and well-focused manner. With that in mind, this article will briefly attempt to consider, examine, and revise 5 things that this document must consider in its entirety.
1. Recent/last 6 months: Historically, we used to suggest only using houses sold in the last year to create this. More recently, that term was reduced to no more than the last 6 months. Many believe that these days, where house prices seem to be rising at or near record rates, we should consider an even shorter period! It is not, in truth, relevant, in most cases, for what, he bought the house, and/or, the cost of the improvements, the owner of the house put up, since he owned it! Rather, it is more about how a specific house compares to the competition.
two. Quality/Feature Comparisons: Don’t compare apples to oranges! Use properties, which are, as similar as possible, in all relevant areas, including location, house size, property size, property taxes, improvements, features, and curb appeal!
3. Similar areas/neighborhoods: Most of us have heard that all real estate is local and while many aspects of that are true, perhaps the key is that often the price is directly related to the specific area and/or neighborhood, and what it offers, including school systems, property taxes, amenities, crime rate, etc.
Four. Not only what sold, but also what didn’t: A comprehensive, meaningful and professionally designed competitive market analysis should include what sold in the target period as well as what did not sell or took more days on the scoreboard to sell. What was the relationship between price and days on the market? Which listings, expired, unsold, and what are the likely reasons? What percentage sold, versus failed, and what type of real estate market is it today (seller, buyer, or neutral)?
5. Relationship between the quoted price and the selling price: It is often said that the real estate market will find that the sales price and the listing price are simply a tool and/or a starting point. In the existing market, how long does it take and how close to the listed price does the house sell? All of these factors must be considered, as part of preparing this valuable document for clients!
Smart customers and the best agents effectively create and use competitive market analysis to achieve the best results! The more everyone understands, uses and respects this process, the better the transaction period will be!
