A comparative market analysis (CMA) is a calculation put together by an experienced listing broker to estimate the listing price of a property. It is different from an appraisal, which pinpoints the precise market price at a given time. It is vital that sellers understand how a CMA is prepared. This blog covers why you need a comparative market analysis for Virginia real estate.
How a Comparative Market Analysis is Prepared?
The current value of a home is determined by buyers. Since the real estate economy fluctuates continuously, a reliable way to identify market value is to look at recent sales. Current homes on the market are not good reflections since one can not determine what they will finally sell for or if they will get sold all. When preparing a comparative market analysis, listing agents like myself attempt to use comparable property and in nearby neighborhoods. Exact matches are not often available, so adjustments are traditionally applied to compensate for differences. Age, square footage, enhancements, and other elements are taken into account. Not all home repairs lead to added value and the dollar value of adjustments typically do not equal the amount paid for them.
Why You Need A Comparative Market Analysis For Virginia Real Estate?
A comparative market analysis usually results in a price range rather than a single price. Where a listing should be priced within that range is based on the number and quality of competing listings and your time line. If you have a short window in which to close on your home, your selected price should be more competitive (at either the low end or even below the estimated range). This is particularly true if there is high inventory. In general, the higher you list a property, the longer it may take to find a buyer. In markets where few listings are available and your property is extremely desirable, you might have the advantage of pricing at the upper end of the range. We can help you with this decision and provide valuable advice. Incorrectly pricing a home for sale can lead to loss of valuable time and money, so refer to our real estate expertise and the undeniable figures in the CMA.
I hope that you found this information on why you need a comparative market analysis for Virginia real estate useful. For other information on marketing a home for sale, read the other blogs on this site.
To request a free comparative market analysis, contact Amir Sadeghi at 571-331-3070 or amirskw@gmail.com.
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