It All Adds Up to Value

By
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

As you search and tour homes that appeal to you on Florida's Treasure Coast, how can you be sure that the asking prices are in line with current values?  Begin by asking your real estate agent to collect comparables and prepare a Comparative Market Analysis (CMA).  This report will indicate market trends by showing whether similar homes in the area are selling for above or below the asking price of the home(s) you have an interest in.Comparable Market Analysis by Gabe Sanders

Using the comparables that your agent researched, you'll be able to figure the average cost per square foot for the area, and determine if the Treasure Coast home you want compares favorably with those figures.  Total the square footage of several homes and divide by the number of homes to get an average, but make sure your agent separates the lot values from the comparables.  Total the "sold" prices of each home and divide by the number of homes to get an average selling price.

Now, divide that average selling price by the average square footage to produce the average price per square foot for homes in the area.  When you multiply that average price per square foot by the square footage of the home you want, you'll discover how your choice compares, and then you'll know whether or not you're looking at a fair price.

Other factors like the seller's motivation or urgency may also affect your offer, so talk to your agent about that CMA before you take the next step!

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Topic:
Home Buying
Location:
Florida Martin County
Groups:
1st Time Buyers
Market Reports
Advice for Sellers
Advice for Buyers
Hyper-Local
Tags:
cma
value
comparables
treasure coast

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Ambassador
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Gabe,

I'm also pulling stats for my buyers which show the average list to sell ratio. Sometimes it can be pretty eye opening.

Rich

Nov 01, 2010 11:31 AM #1
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Richard, yes it can be, but I would use caution with this one.  Some locations in my area make for pretty poor results as all the listings are very over priced and sell at a poor ratio.  Other areas close by are the opposite and sell at close to 98% of list price.

Nov 01, 2010 11:46 AM #2
Rainmaker
507,032
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Gabe, good basic advice for folks. These kinds of facts help clients make good and informed decisions.

Cal

Nov 01, 2010 03:54 PM #3
Ambassador
3,350,698
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Gabe!  Great advice for the consumer!  I don't know how agents who don't use statistical data ever properly price a home these days--well, maybe that's why you and I get their expired listings!!  LOL  

Happy selling!

Nov 01, 2010 05:14 PM #4
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks Cal.

Absolutely Debe.

Nov 01, 2010 10:41 PM #5
Rainmaker
684,100
Janice Ankrett
Janice Ankrett Home Staging - Burlington, ON
Staging Professional

I've never thought of the CMA and buyers. I always connected it with the seller. Thanks.

Nov 04, 2010 08:36 AM #6
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate
Janice, if the buyers are realistic, it's a great tool.
Nov 04, 2010 11:34 AM #7
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for your comments, always appreciated.

Jul 04, 2015 07:40 AM #8
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Richard, thanks for taking the time to comment it is always appreciated.

Mar 25, 2018 05:48 AM #9
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Cal, thanks for taking the time to comment it is always appreciated.

Mar 25, 2018 05:48 AM #10
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Debe, thanks for taking the time to comment it is always appreciated.

Mar 25, 2018 05:48 AM #11
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Janice, thanks for taking the time to comment it is always appreciated.

Mar 25, 2018 05:48 AM #12
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Gabe Sanders

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