A comparative market analysis (CMA) is a report put together by an experienced listing broker to determine the sale price of a house. It is separate from an appraisal, which pinpoints the specific market price at a point in time. It is important that sellers learn about how a comparative market analysis is prepared. This blog discusses understanding a comparative market analysis for MA real estate.
How a MA Comparative Market Analysis is Prepared
The market value of a home is driven by buyers. Since the real estate economy changes frequently, the traditional way to determine market value is to review other homes that recently sold. Current homes on the market are not accurate estimations since it can not be predicted what they will ultimately sell for or if they will sell at all. When compiling a comparative market analysis, listing brokers attempt to use comparable property and in nearby areas. Identical properties are rarely available, so changes are typically made to reflect any differences. Upgrades, interior space, enhancements, and other factors are taken into consideration. Not all features add value and the amount of adjustments rarely match the expense paid for them.
Understanding A Comparative Market Analysis For MA Real Estate
A CMA report generally provides a price range instead of an exact amount. Where a listing falls within that range depends on the volume and quality of competing homes for sale and your desired time frame. If you have a short window in which to sell, your selected price must be more competitive (at either the low end or even below the estimated range). This is especially true if there is an overstock of homes for sale. In general, the higher you price a home, the more time it may take to sell. In an economy 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 experienced broker can help you with this decision and provide critical advice. Overpricing a listing can lead to loss of valuable time and money, so refer to the expertise of listing agents and the undeniable figures in the CMA report.
I hope that you found this overview of understanding a comparative market analysis for MA real estate helpful. For additional guidance on marketing a property for sale, review the other articles on this site. To receive a complimentary comparative market analysis, contact Christopher Graves at 978-376-5389 or christopher.d.graves@gmail.com.
