A comparative market analysis (CMA) is a report prepared by a local listing agent to identify the potential price range of a home. It is different from an appraisal, which targets the exact price at a given time. It is crucial that sellers comprehend how a CMA is prepared. This blog covers the importance of a comparative market analysis for MA properties.
How a MA Comparative Market Analysis is Compiled
The market value of a dwelling is controlled by buyer demand. Because the real estate economy changes regularly, the traditional way to estimate market value is to analyze other listings that sold in previous months. Active homes for sale are not good reflections since it can not be predicted what they will finally sell for or if they will sell at all. When developing a comparative market analysis, listing agents attempt to find similar listings and in comparable areas. Exact matches are not often available, so changes are usually made to compensate for any differences. Age, square footage, amenities, and other factors are taken into account. Not all differences lead to added value and the dollar value of adjustments typically do not equal the cost of upgrades.
The Importance Of A Comparative Market Analysis For MA Properties
A CMA report normally results in a range for price rather than a single amount. Where a property should be priced within that range is based on the number and quality of competing real estate listings and your time frame. If you have a short window in which to sell your home, your pricing must be more aggressive (at either the bottom or even less than the price range). This is especially true if there is an abundance of real estate on the market. In general, the higher you list a home, the longer it may take to sell. In markets where few listings are available and your property is extremely desirable, you may have the luxury of pricing at the high end of the range. A competent agent will help you with this decision and offer valuable guidance. Overpricing a home can result in loss of valuable time and money, so refer to the knowledge of agents and the undeniable information in the CMA.
I hope that you found this information on the importance of a comparative market analysis for MA properties useful. For additional guidance on marketing real estate for sale, review the other articles on this website. To receive a free comparative market analysis, contact John Wells at 978-518-1481 or firstname.lastname@example.org.